Nvidia drops 1.2% before the market opens, going from yesterday's darling to a pullback in just one night

US stocks are collectively weakening in the pre-market for technology shares. According to the latest news, Nvidia fell 1.2%, Google C declined 0.95%, Oracle dropped 1.7%, and Intel decreased 2%, forming a stark contrast to the strong performance of the previous trading day. This shift is worth noting as it reflects subtle changes in market sentiment.

24-Hour Turnaround from Strength to Pullback

On the previous trading day (January 9), the three major US stock indices closed higher across the board, with the Dow Jones and S&P 500 both hitting record highs. Among them, Intel performed the most notably, rising over 10% to reach a new high since March 2024, while Nvidia, although slightly down 0.1%, did not become the focus.

Now, the pre-market situation has reversed. Nvidia’s 1.2% decline is not the largest among tech stocks, but its symbolic significance is unusual—being the core driver of the tech rebound over the past year, any adjustment easily draws market attention.

Multiple Sources of Pressure

Short-term emotional fluctuations

The widespread decline in pre-market may reflect investors’ profit-taking psychology after high levels. After the previous day’s record high in US stocks, some investors chose to cool off in pre-market trading, which is a common technical adjustment.

Unique risk factors for Nvidia

According to relevant information, Nvidia has recently faced multiple pressures: changes in Chinese chip policies (implementing full payment delivery policies), geopolitical uncertainties, and market re-evaluation of its high valuation. These factors stack up and can easily trigger sell-offs in pre-market.

The double-edged sword of storage chip demand

Although enterprise storage demand driven by Nvidia is booming (with storage stocks like SanDisk, Micron surging the previous day), this also means the market has fully digested this positive news. The room for additional positive catalysts is limited, which can instead lead to a high-level pullback.

Contradiction Between Long-term Optimism and Short-term Adjustment

Interestingly, while Nvidia’s pre-market decline occurs, industry voices remain optimistic about its long-term prospects. According to information, Strategy founder Michael Saylor stated on January 12 that the best-performing assets over the past decade are digital intelligence (Nvidia), digital credit (Strategy), and digital capital (Bitcoin). This indicates that institutional investors still have high confidence in Nvidia’s fundamentals.

This contradiction precisely reflects the current market reality: Nvidia’s fundamentals have not worsened, but after a rapid rise, a short-term correction is a normal technical phenomenon.

Summary

Nvidia’s move from relative calm the day before to a 1.2% decline in the pre-market is essentially a normal fluctuation after reaching high levels. In the short term, profit-taking at high levels is common; in the long term, Nvidia remains a core supplier of AI computing power, and its strategic position has not changed. Investors need to distinguish between short-term technical adjustments and long-term trend changes, avoiding over-interpretation of single-day volatility. The key focus moving forward should be whether this correction can stabilize at support levels and how Federal Reserve policies will impact tech stocks.