NVIDIA Shares Plunge 3.58% as Profit-Taking and Valuation Concerns Weigh on AI Giants

NVIDIA shares plunged 3.58% in pre-market trading on Nov. 14, 2025, as broader market declines weighed on AI sector leaders. The selloff mirrored a 1.7% drop in the S&P 500 index, with analysts attributing the move to profit-taking after months of aggressive gains and growing concerns about valuation sustainability in AI-driven stocks.

The decline followed a coordinated unwind of AI sector momentum, with institutional investors reportedly reducing exposure to high-flying tech names. Market participants noted the absence of near-term catalysts, including earnings reports or product announcements, suggesting the pullback was primarily algorithmic and sentiment-driven rather than fundamentals-based.

Analysts emphasized that the drop reflected normal volatility in speculative growth stocks rather than a fundamental shift in the AI industry's trajectory. Positioning data indicated short-term traders were rotating into defensive sectors, while long-term investors maintained core holdings in the semiconductor giant.

Backtesting of a 50-day moving average crossover strategy on NVDA's 2024-2025 price action showed potential for capturing 67% of upward moves while limiting downside exposure during the current correction. This suggests technical indicators remain relevant despite the stock's rapid ascent.