Nvidia, still the world’s biggest company by market capitalisation, shows signs of steadying after a torrid fourth quarter last year. The stock hit an all-time high above $212 at the end of October and then dropped 20% over the following month, breaking below $170. It appears to have found its footing since mid-December, rallying 10% from its lows.
Source: TN Trader
But it has stalled out somewhat, and it looks as if investors currently prefer to deploy funds to stocks with cheaper valuations for now. This is despite CEO Jensen Huang dominating the 2026 CES show in Las Vegas. He started by emphasising the importance of robotics to the company, stating that Nvidia was talking to robotaxi developers and manufacturers about using Nvidia’s chips and Drive AV software.
He also announced that production on its new Vera Rubin supercomputer had begun. Later, he said the company is seeing very strong Chinese demand for its H200 AI chips, adding that production has restarted and export license details are being finalised with the US government. Despite this, Nvidia’s stock price has traded sideways since the end of last year.
US stock index futures were a touch weaker in early trade this morning. This suggests a touch of profit-taking given the rally since the New Year, and ahead of some key labour market updates. Today’s ADP Payrolls came in a touch light. JOLTS Job Openings and ISM Services PMI come out later. Weekly Unemployment Claims come out tomorrow, while Friday brings the official Non-Farm Payroll numbers for December.
Overall, today’s price action so far looks like consolidation rather than the start of a significant pullback. S&P volatility, as measured by the VIX, suggests that investors see little need to hedge their long side exposure, even as the Dow and S&P hit record highs. Could this indicate excessive complacency? We’ll see.
