U.S. Stocks Plummet Amid Rising Oil Prices and Iran Negotiation Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 27 2026
0mins
Should l Buy NVDA?
Source: CNBC
- Nasdaq Index Plunge: The Nasdaq 100 experienced its worst one-day drop since October, while the S&P 500 and Nasdaq Composite recorded their worst performance since January 20, indicating heightened market concerns over economic outlook.
- Sector Performance Divergence: Tech stocks have fallen 15.5% from their October highs, whereas the energy sector has risen 10.5% since the onset of the Iran conflict, suggesting a potential reevaluation of asset allocation by investors based on sector resilience.
- Oversold Stocks: Only five stocks in the Nasdaq 100 are considered 'oversold' with an RSI of 30, indicating a bearish market sentiment that may lead to selling pressure, particularly affecting well-known companies like Microsoft and Disney.
- Cruise Line Performance Decline: Carnival Cruise Line's shares have dropped 17.6% over the past three months and 25% since the February 6 high, reflecting a sluggish recovery in the travel industry that could undermine future investor confidence.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NVDA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 198.350
Low
200.00
Averages
264.97
High
352.00
Current: 198.350
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nvidia's Stock Underperformance Despite Rapid Revenue Growth
- Significant Revenue Growth: Nvidia reported $68.1 billion in revenue for Q4 FY2026, a 73% increase year-over-year, with data center sales contributing $62.3 billion, up 75%, highlighting strong demand and market position in the AI sector.
- Capital Expenditure Commitments: The 'Magnificent Seven', including Alphabet, Microsoft, Amazon, and Meta, announced up to $700 billion in capital expenditures for 2023, which, while not all directed to Nvidia, will drive demand for its GPUs and impact future performance.
- Market Capitalization vs. Valuation: Despite Nvidia's market capitalization soaring to the highest in the past two years, its forward P/E ratio stands at 23.9, significantly below the three-year average of 79, indicating that the market may be underestimating its future growth potential, presenting a possible investment opportunity.
- Future Growth Expectations: CEO Jensen Huang forecasts that Nvidia could achieve $1 trillion in AI revenue by 2027, compared to just $215.9 billion in 2025, suggesting the company is on a trajectory of rapid growth that investors should closely monitor.
See More
Chewy: A No-Brainer Growth Stock to Buy Now
- Autoship Program Growth: Chewy's Autoship service accounted for 84% of sales in Q4, up from 80.6% a year ago, which not only locks in customers but also reduces inventory management costs, thereby enhancing the company's profitability.
- Strong Advertising Business: Chewy Ads is experiencing growth driven by first-party data and a highly engaged audience, with CEO Sumit Singh noting that a significant portion of ad-attributed purchases comes from Autoship orders, providing advertisers with high returns on investment and further boosting the company's overall operating margin.
- Healthcare Business Expansion: As of early April, Chewy had 18 Vet Care clinics and recently added 29 more through the acquisition of Modern Animal, with the healthcare business operating at a higher margin, providing a new avenue to attract customers while tightly integrating with its online pharmacy to enhance customer retention.
- Improving Profitability: Chewy's adjusted EBITDA margin was 5.7% last year, up from 4.8% the previous year, with management expecting continued expansion this year and a long-term goal of reaching a 10% EBITDA margin, indicating a potential 75% growth in EBITDA even without revenue growth.
See More
Cursor Plans $2 Billion Fundraising at Over $50 Billion Valuation
- Funding Scale and Valuation: AI startup Cursor is in talks to raise a $2 billion funding round at a valuation exceeding $50 billion, a figure that does not include this investment, highlighting strong market interest in AI coding agents.
- Investor Lineup: The funding round is co-led by Andreessen Horowitz, with Nvidia and Thrive Capital also expected to participate, indicating confidence in Cursor's future as all three are existing investors.
- Market Competition Landscape: Although Cursor was a pioneer in the AI coding agent space, competitors like Google, Anthropic, and OpenAI have launched similar tools, intensifying competition and necessitating rapid innovation from Cursor to maintain its market leadership.
- Product Updates and Features: In February, Cursor released several updates enhancing AI agents' capabilities, including the ability to test coding changes and record actions, which will further improve developer efficiency and drive company growth.
See More
Market Dynamics: The Tug-of-War Between Bonds and Oil Prices
- Bond Market Stability: The slight decline in bond yields indicates a stable market outlook, which helps support the stock market, particularly amid oil price fluctuations, thereby reducing investor panic.
- Tech Stock Recovery: The so-called 'Magnificent Seven' tech companies, including Alphabet and Amazon, are beginning to reap benefits from their previous high expenditures, enhancing market confidence in their future profitability, which could drive further market gains.
- Rise of the AI Economy: The emergence of AI agents is expected to significantly reduce hiring and operational costs for enterprises, driving demand for chips like Nvidia's, which will further boost growth for related companies.
- Improved Investor Sentiment: Despite ongoing market uncertainties, the combination of low bond yields and strong performance from tech stocks fosters an optimistic outlook among investors, potentially attracting more capital into the stock market.
See More
AI Startup Cursor in Talks for $2 Billion Fundraising at $50 Billion Valuation
- Large Fundraising Round: AI startup Cursor is in discussions to raise $2 billion at a valuation exceeding $50 billion, a figure that does not include the new investment, indicating strong market interest in AI coding agents.
- Strong Investor Lineup: Andreessen Horowitz is set to co-lead the funding round, with Nvidia and Thrive Capital also expected to participate, all of which are previous backers of Cursor, reflecting confidence in its future growth.
- High Industry Enthusiasm: This funding round underscores the venture capital industry's enthusiasm for startups specializing in AI coding agents capable of completing various software development tasks, driving innovation across the sector.
- Intensifying Market Competition: Although Cursor was a pioneer in the AI coding agent space, competitors like Google, Anthropic, and OpenAI have launched similar tools, intensifying competition and necessitating continuous innovation for Cursor to maintain its lead.
See More
Microsoft Stock Rebounds, Long-Term Outlook Positive
- Stock Rebound: Since the beginning of April, Microsoft's stock has surged over 14%, although it remains down more than 20% from its all-time high in October 2025, indicating strong market confidence in its long-term value.
- AI Threat Mitigation: By integrating the AI assistant Copilot into its productivity suite, Microsoft demonstrates a robust culture of innovation and strong enterprise relationships, effectively countering potential threats posed by AI and maintaining its core market share.
- Economic Resilience: A significant portion of Microsoft's revenue comes from subscription services, providing strong resilience during economic downturns, while its pricing power allows it to maintain its customer base even amid rising costs, further solidifying its market position.
- Reasonable Valuation: Despite the recent stock price increase, Microsoft's forward P/E ratio remains lower than the average of the
See More
Nvidia's Stock Underperformance Despite Rapid Revenue Growth
- Significant Revenue Growth: Nvidia reported $68.1 billion in revenue for Q4 FY2026, a 73% increase year-over-year, with data center sales contributing $62.3 billion, up 75%, highlighting strong demand and market position in the AI sector.
- Capital Expenditure Commitments: The 'Magnificent Seven', including Alphabet, Microsoft, Amazon, and Meta, announced up to $700 billion in capital expenditures for 2023, which, while not all directed to Nvidia, will drive demand for its GPUs and impact future performance.
- Market Capitalization vs. Valuation: Despite Nvidia's market capitalization soaring to the highest in the past two years, its forward P/E ratio stands at 23.9, significantly below the three-year average of 79, indicating that the market may be underestimating its future growth potential, presenting a possible investment opportunity.
- Future Growth Expectations: CEO Jensen Huang forecasts that Nvidia could achieve $1 trillion in AI revenue by 2027, compared to just $215.9 billion in 2025, suggesting the company is on a trajectory of rapid growth that investors should closely monitor.
See More
Chewy: A No-Brainer Growth Stock to Buy Now
- Autoship Program Growth: Chewy's Autoship service accounted for 84% of sales in Q4, up from 80.6% a year ago, which not only locks in customers but also reduces inventory management costs, thereby enhancing the company's profitability.
- Strong Advertising Business: Chewy Ads is experiencing growth driven by first-party data and a highly engaged audience, with CEO Sumit Singh noting that a significant portion of ad-attributed purchases comes from Autoship orders, providing advertisers with high returns on investment and further boosting the company's overall operating margin.
- Healthcare Business Expansion: As of early April, Chewy had 18 Vet Care clinics and recently added 29 more through the acquisition of Modern Animal, with the healthcare business operating at a higher margin, providing a new avenue to attract customers while tightly integrating with its online pharmacy to enhance customer retention.
- Improving Profitability: Chewy's adjusted EBITDA margin was 5.7% last year, up from 4.8% the previous year, with management expecting continued expansion this year and a long-term goal of reaching a 10% EBITDA margin, indicating a potential 75% growth in EBITDA even without revenue growth.
See More
Cursor Plans $2 Billion Fundraising at Over $50 Billion Valuation
- Funding Scale and Valuation: AI startup Cursor is in talks to raise a $2 billion funding round at a valuation exceeding $50 billion, a figure that does not include this investment, highlighting strong market interest in AI coding agents.
- Investor Lineup: The funding round is co-led by Andreessen Horowitz, with Nvidia and Thrive Capital also expected to participate, indicating confidence in Cursor's future as all three are existing investors.
- Market Competition Landscape: Although Cursor was a pioneer in the AI coding agent space, competitors like Google, Anthropic, and OpenAI have launched similar tools, intensifying competition and necessitating rapid innovation from Cursor to maintain its market leadership.
- Product Updates and Features: In February, Cursor released several updates enhancing AI agents' capabilities, including the ability to test coding changes and record actions, which will further improve developer efficiency and drive company growth.
See More
Market Dynamics: The Tug-of-War Between Bonds and Oil Prices
- Bond Market Stability: The slight decline in bond yields indicates a stable market outlook, which helps support the stock market, particularly amid oil price fluctuations, thereby reducing investor panic.
- Tech Stock Recovery: The so-called 'Magnificent Seven' tech companies, including Alphabet and Amazon, are beginning to reap benefits from their previous high expenditures, enhancing market confidence in their future profitability, which could drive further market gains.
- Rise of the AI Economy: The emergence of AI agents is expected to significantly reduce hiring and operational costs for enterprises, driving demand for chips like Nvidia's, which will further boost growth for related companies.
- Improved Investor Sentiment: Despite ongoing market uncertainties, the combination of low bond yields and strong performance from tech stocks fosters an optimistic outlook among investors, potentially attracting more capital into the stock market.
See More
AI Startup Cursor in Talks for $2 Billion Fundraising at $50 Billion Valuation
- Large Fundraising Round: AI startup Cursor is in discussions to raise $2 billion at a valuation exceeding $50 billion, a figure that does not include the new investment, indicating strong market interest in AI coding agents.
- Strong Investor Lineup: Andreessen Horowitz is set to co-lead the funding round, with Nvidia and Thrive Capital also expected to participate, all of which are previous backers of Cursor, reflecting confidence in its future growth.
- High Industry Enthusiasm: This funding round underscores the venture capital industry's enthusiasm for startups specializing in AI coding agents capable of completing various software development tasks, driving innovation across the sector.
- Intensifying Market Competition: Although Cursor was a pioneer in the AI coding agent space, competitors like Google, Anthropic, and OpenAI have launched similar tools, intensifying competition and necessitating continuous innovation for Cursor to maintain its lead.
See More
Microsoft Stock Rebounds, Long-Term Outlook Positive
- Stock Rebound: Since the beginning of April, Microsoft's stock has surged over 14%, although it remains down more than 20% from its all-time high in October 2025, indicating strong market confidence in its long-term value.
- AI Threat Mitigation: By integrating the AI assistant Copilot into its productivity suite, Microsoft demonstrates a robust culture of innovation and strong enterprise relationships, effectively countering potential threats posed by AI and maintaining its core market share.
- Economic Resilience: A significant portion of Microsoft's revenue comes from subscription services, providing strong resilience during economic downturns, while its pricing power allows it to maintain its customer base even amid rising costs, further solidifying its market position.
- Reasonable Valuation: Despite the recent stock price increase, Microsoft's forward P/E ratio remains lower than the average of the
See More
