Nvidia Stock Shows Resilience Amid Market Shifts

Nvidia's stock has faced challenges, including a 10% decline over the past three months due to concerns about AI chip demand and competition, despite reporting strong growth. However, recent sales data from Taiwan Semiconductor Manufacturing Company (TSMC) shows a significant 36% year-over-year revenue increase, suggesting that demand for Nvidia's AI chips may remain robust. Institutional investors are increasingly buying Nvidia shares, with notable increases in positions reported, while retail investors appear more cautious. Analysts remain optimistic about Nvidia's prospects ahead of its February 26 earnings report, citing its technological lead in AI software. Additionally, competition from Chinese startup DeepSeek has raised concerns, but some analysts view this as a buying opportunity amid ongoing solid demand for Nvidia's products. Trading activity, particularly in options, indicates a mixed sentiment with both bearish and bullish moves.