By Danny Vena, CPA
Publication Date: 2026-04-08 07:02:00
This has been a tough year thus far for Nvidia (NVDA +0.07%). Despite delivering record-breaking results and a stunning forecast, the stock continues to languish and has been treading water for more than eight months. There isn’t any one thing holding back the artificial intelligence (AI) chipmaker, but a confluence of events that have kept the stock rangebound.
The geopolitical backdrop, persistent inflation, and questions about the future adoption of AI have weighed on Nvidia’s stock, and even some seasoned investors are beginning to lose faith.
Now hedge funds are starting to get in on the action, selling stocks last month at the fastest rate in 13 years, according to data uncovered by Goldman Sachs. Some of the biggest names in technology, including Nvidia, were victims of the fire sale. Fund managers also sought to fortify their positions by shorting U.S. exchange-traded funds, which is a particularly bearish indicator that suggests they believe stock prices will fall. Historically, moves like this bode ill for the market.
This leaves Nvidia investors wondering what to do next. Let’s dive in.
Image source: The Motley Fool.
Taking a step back
Nvidia stock had an epic three-year run through the end of 2025, during which the stock price surged by more than 1,180%. After a run of that magnitude, it’s understandable that many Nvidia investors are looking to step back and take stock — as it were — and there’s a lot to like.
Despite tough comps, the chipmaker continues…
