Nasdaq Index Correction and AI Stock Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Market Correction: The Nasdaq Composite index fell over 10% in Q1 2026, entering correction territory and down about 11% year-to-date, reflecting investor concerns over the overvaluation of AI stocks leading to capital outflows.
- AI Stock Volatility: Despite AI stocks driving a bull market over the past three years, investor confidence waned in late 2025 and Q1 2026 due to high P/E ratios and significant capital expenditures, prompting a shift towards more stable value and dividend stocks.
- Market Rebound: Since April 1, the Nasdaq Composite has rebounded approximately 13%, returning to positive territory, partly due to a temporary easing of tensions between Iran and the U.S., indicating renewed investor interest in AI stocks.
- Investor Confidence: Analysts suggest that despite the correction, investors still view AI technology as transformative, with many starting to reinvest in AI stocks as P/E ratios return to normal levels, seeking long-term value.
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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: 202.500
Low
200.00
Averages
264.97
High
352.00
Current: 202.500
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.
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- Stock Surge: The company's shares soared 18% on Thursday, marking its best single-day performance since 2000, with a year-to-date increase of approximately 60%, reflecting strong market confidence in its growth potential.
- Optimistic Future Guidance: Texas Instruments anticipates Q2 revenue between $5 billion and $5.4 billion, representing a 17% growth at the midpoint, with expected EPS ranging from $1.77 to $2.05, demonstrating the company's confidence in sustained growth.
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