Nvidia shares slipped on Thursday, ending a historic 11-day winning streak as the stock showed signs of exhaustion near the psychologically important $200 level. The chipmaker's stock fell 0.4% to $198.08, after briefly trading higher earlier in the session.
The pullback comes after Nvidia logged 11 consecutive days of gains, its longest winning streak since at least 1999, according to Dow Jones Market Data. The rally lifted shares from recent lows near $165 and briefly pushed the stock above $200 on Wednesday, a level it has not consistently held since late last year. Nvidia's all-time closing high stands at $207.04, reached on October 29.
Breakout Above $200 Remains Elusive
Despite the recent gains, Nvidia has yet to deliver a decisive breakout above the $200 mark, which remains a key psychological and technical threshold for investors. The stock's inability to sustain moves above that level reflects lingering caution, even as Wall Street price targets continue to imply further upside. For context, see our earlier analysis: Nvidia Shares Surpass $200 as Analysts Cite AI Leadership and Valuation Support.
Thursday's decline also aligned with broader market weakness. The S&P 500 fell 0.1%, while the Nasdaq Composite declined 0.3%. The Dow Jones Industrial Average dropped 68 points, or 0.2%. Even so, the major indexes remain on track for strong weekly gains, with the S&P 500 up around 3%, the Nasdaq more than 4%, and the Dow about 1%.
Supplier Strength Fails to Lift Sector
Earnings from major semiconductor suppliers reinforced the strength of AI-driven demand but failed to provide a sustained boost to chip stocks. Taiwan Semiconductor Manufacturing Company reported a 58% jump in first-quarter profit, exceeding expectations and marking its fourth consecutive quarter of record earnings.
"AI-related demand continues to be extremely robust," CEO CC Wei said during the company's earnings call. High-performance computing, which includes AI chips produced for Nvidia, accounted for 61% of TSMC's revenue in the quarter, up from 55% in the previous period. Advanced chips manufactured at 7nm and below made up about 74% of revenue, supporting gross margins of 66%. Despite the strong results, TSMC shares fell about 2% on Thursday.
Elsewhere in the sector, ASML declined further after initially dropping as much as 6.5% on Wednesday. The stock closed about 2.5% lower in the prior session and fell another 3% on Thursday, despite reporting solid first-quarter results and raising forward guidance.
The muted market reaction to strong earnings from both TSMC and ASML highlights elevated investor expectations for the semiconductor sector, particularly as AI-driven growth becomes more central to valuations. Recent history reflects similar dynamics: Nvidia's strong fourth-quarter earnings report last quarter was followed by a 5% decline in its share price, underscoring how high expectations can limit upside reactions. For more on recent Nvidia volatility, see: Nvidia Stock Rebounds 2% on South Korea AI Deals; CEO Calls Selloff a Discount.
Awaiting Next Catalyst
Investors are now turning their attention to upcoming earnings from major technology companies as the next potential catalyst for Nvidia. Market participants are particularly focused on whether large technology firms will continue to increase capital expenditure on AI infrastructure and whether new models are being trained on Nvidia's Blackwell architecture.
Such signals would provide greater clarity on demand sustainability and could determine whether Nvidia can break decisively above the $200 level after its historic run. For a broader view of market dynamics, see: S&P 500's 8% April Rally Fueled by Technical Factors and Geopolitical Bets.
This article is for informational purposes only and does not constitute financial advice.
