A slew of announcements at the GTC AI Conference in San Jose, California failed to ignite the shares of Nvidia Corp. (NASDAQ:NVDA) on Tuesday as it slipped over 3% in trade. The chipmaker led by Jensen Huang has wiped $420 billion in investor wealth since DeepSeek was launched on Jan. 10, 2025

What Happened: In a two-hour address at GTC, Huang detailed Nvidia’s upcoming two-year plans, including developments on their Blackwell and Rubin chips.

Huang also highlighted advancements in AI for robotics and telecommunications and revealed a new collaboration with General Motors Co. (NYSE:GM) for AI manufacturing training.

However, these announcements did not help the stock as it fell by 3.43%, underperforming the Nasdaq 100 index which plunged 1.66%. The exchange-traded fund tracking the index, Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) also declined 1.70% on Tuesday.

According to the data from Benzinga Pro, Nvidia has declined 14.04% on a year-to-date basis, reducing investor wealth by $380 billion since Dec. 31, 2024, when its market capitalization stood at $3,297 billion as compared to the current $2,917 billion.

Similarly, when compared with the m-cap from the weekend when DeepSeek became the top application on Apple Inc.’s (NASDAQ:AAPL) App Store, the metric has fallen $585 billion from Jan. 24.

The trailing price-to-earnings ratio for the company stood at 40.66x, which was the lowest in over two years or 29 months since Oct. 20, 2022.

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Why It Matters: The Nasdaq has been trading in the correction zone since March 6 and the Magnificent 7 stocks have underperformed the market in 2025.

Meanwhile, China’s low-cost AI chips and open-source LLMs could deflate the ‘AI bubble,’ said Edward Yardeni, which will lead to lower AI spending and profitability for Magnificent 7 stocks.

Technical Analysis: Nvidia’s technical analysis paints a grim picture for the stock. The stock price at $115.43 apiece was in a bullish downtrend as it was lower than short and long-term moving averages.

While its, relative strength index was in the neutral zone at 44.03, the other momentum indicator, MACD was at -4.04 signaling a bearish trend with the potential of a weak downward momentum, given that the blue line was above the red line.

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Price Action: Despite the recent fall Nvidia shares have risen 29.12% over a year. Benzinga's Edge Rankings show a poor price trend and value ranking for the stock. The stock’s momentum, fundamental growth, and quality rankings continue to be strong amid other pressures.

Its consensus price target was $175.95, with a ‘buy' rating, based on the 41 analysts tracked by Benzinga. The price targets ranged from a low of $120 to a high of $220. The three latest ratings from Mizuho, DA Davidson, and Cantor Fitzgerald averaged $167.67, implying a 46.08% upside.

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