Nvidia(NASDAQ: NVDA) 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(NASDAQ: AMD) declined 5.4% to $166.55, while Broadcom (NASDAQ: AVGO) 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.
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Daily Stock News has no position in any of the stocks mentioned. This article was generated with GPT-4o, OpenAI’s large-scale language generation model and has been reviewed by The Motley Fool’s AI quality control systems. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
