Traders wary as Nvidia stock shows "death cross."

Investors are feeling uneasy about Nvidia, as recent market trends raise concerns. The company's stock fell over two percent on Friday, continuing a downward trend that has seen it drop more than four percent this week. This decline followed a keynote speech from CEO Jensen Huang, which many expected to inspire confidence in the company’s future but failed to do so. Nvidia shares have seen a troubling "death cross" pattern, where the 50-day moving average dipped below the 200-day average. This pattern historically indicates potential losses, such as the last occurrence in April 2022, when shares plummeted by over 30 percent in two months. Analysts have noted that Nvidia is currently facing negative momentum. Concerns about future spending on artificial intelligence, particularly due to China’s DeepSeek developments and ongoing economic uncertainties, have made investors cautious. Despite Nvidia's solid fundamentals and low price-to-earnings ratios, investors are looking for clearer signs of growth. They hope to see substantial jumps in revenue, like the anticipated $43 billion for the first quarter, to regain confidence in the stock. Broader economic issues also impact sentiment. Investors are worried that potential slowdowns in AI spending by major companies could hurt chipmakers like Nvidia. There are few catalysts on the horizon to boost the stock in the coming weeks, making the overall economic climate crucial for its recovery. Analysts are watching April 2 closely for possible developments related to presidential tariffs, which could influence market conditions. Despite the concerns, some experts argue that the death cross pattern doesn’t necessarily signal worsening prospects for Nvidia, as the stock has been moving within a defined range for a while.