Nvidia (NVDA 0.43%) shares fell 3.5% on Tuesday, closing at $175.64, as tech stocks broadly pulled back following a recent rally. The chipmaker traded 183 million shares, just above its three-month average of 181 million, signaling a cooling of momentum after reaching record highs earlier this month.
The broader markets reflected similar unease. The Nasdaq Composite dropped by 1.5%, while the S&P 500 lost 0.6%. Concerns over valuation, interest rate outlooks, and profit-taking hit growth and tech names hardest.
Peers in the semiconductor space also struggled. Advanced Micro Devices (AMD 1.91%) declined 5.4% to $166.55, while Broadcom (AVGO 0.19%) slipped 3.6% to end the session at $294.91. The across-the-board pullback in chips suggests investors are taking profits after a strong summer run.
Still, the long-term bullish case for Nvidia remains intact, according to analysts. Morgan Stanley's analytical team raised its price target to $206, up from $200. Meanwhile, Piper Sandler also increased its price target to $225, from a prior $180. Analyst confidence signals that Wall Street still views Nvidia as a cornerstone of the AI-driven future.
Market data sourced from Google Finance and Yahoo! Finance on Tuesday, Aug. 19, 2025.
