Summary
- Nvidia (NVDA) sees a mild 3.2% pullback following a record-setting April
- Traders rotate profits after AI chip demand spike drives Q1 rally
- Analysts say cooling is temporary, with new AI products on the horizon
- Data center growth and Blackwell GPU shipments remain strong
- NVDA remains top large-cap AI equity despite short-term consolidation
NVDA Cools Off After Hot Streak — But the AI Story Isn’t Over
Nvidia’s stock (NASDAQ: NVDA) pulled back slightly on May 1, 2025, closing down 3.2% to $861.30 after peaking at an all-time high of $889.70 in April. The pullback comes as traders lock in profits and recalibrate expectations ahead of the company’s upcoming product roadmap updates — particularly related to Blackwell GPUs and next-gen AI accelerators.
Despite the dip, NVDA remains one of the strongest performers in the S&P 500 this year, still up over 78% year-to-date and serving as a key beneficiary of the ongoing AI infrastructure boom.
Q1 Highlights Show Strength in Data Center and AI Chips
Nvidia’s Q1 earnings in late April beat expectations across the board:
- Revenue: $26.9 billion (+52% YoY)
- EPS: $5.13 (vs. $4.71 expected)
- Data Center Revenue: $19.4 billion (+63% YoY)
- Gaming Revenue: $3.2 billion (+18% YoY)
- Free Cash Flow: $13.1 billion
What continues to power Nvidia’s explosive growth is its dominance in training and inference hardware, with Blackwell architecture GPUs already being deployed in high-performance AI clusters across major cloud providers.
Investor Focus Shifts to What’s Next
Analysts note that the modest pullback is not a bearish reversal, but rather a breather after a nearly uninterrupted 6-week rally. Market watchers are now awaiting:
- Update on Blackwell B100 rollouts at GTC Shanghai (mid-May)
- Progress on AI inference platform partnerships with Meta, Amazon, and Google
- Potential share buybacks or dividend hike, given record free cash flow
“Nvidia remains the backbone of global AI infrastructure,” said Wedbush analyst Dan Ives. “Any dip is a buying opportunity — we expect a re-acceleration later this quarter.”
Technical Outlook: Healthy Pullback Within Uptrend
Technically, NVDA remains in a strong uptrend, with RSI easing from overbought (74) to 65, suggesting healthy consolidation. Support is seen near $838, with resistance again at $890.
The current price action mirrors past breakout setups from Q3 2023 and Q1 2024, both of which resolved to the upside following brief consolidation phases.
AI Tailwinds Still Favor Nvidia’s Market Dominance
From sovereign AI initiatives to generative model demand, the hardware backbone of artificial intelligence continues to center on Nvidia’s chips. As the race for custom LLM deployment, edge inference, and low-latency AI applications accelerates, NVDA is widely expected to benefit from:
- Expansion of AI chip supply to Asia-Pacific cloud centers
- Launch of energy-efficient GPUs for enterprise data centers
- Growing developer support for CUDA and Nvidia AI Enterprise SDKs
Investors remain laser-focused on Nvidia’s ability to maintain pricing power in the face of rising competition from AMD, Intel, and custom ASIC solutions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
Alma Sarah is a freelance writer and marketing consultant. Alma specializes in content marketing, SEM, SEO and social media strategy. When she’s not writing, Alma enjoys hanging out with friends, cooking, and spending time with her family.
