Why Nvidia Stock Just Dropped After Jumping Nearly 5%

**Nvidia **(NVDA +1.63%) stock finished Monday up just 1.6% despite gaining as much as 4.8% earlier in the day. The **S&P 500 **gained 1%.

Nvidia targets $1 trillion in sales

CEO Jensen Huang took the stage at the company’s GTC conference, showcasing Vera Rubin – the company’s next-generation AI architecture. Huang said he expects cumulative purchase orders between the current generation Blackwell and Vera Rubin to hit $1 trillion through 2027.

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NASDAQ: NVDA

Nvidia

Today’s Change

(1.63%) $2.94

Current Price

$183.19

Key Data Points

Market Cap

$4.4T

Day’s Range

$181.42 - $188.88

52wk Range

$86.62 - $212.19

Volume

8.8M

Avg Vol

175M

Gross Margin

71.07%

Dividend Yield

0.02%

The market’s expectations are sky-high despite current anxiety

The GTC announcements were legitimately impressive, the technical capacity of Vera Rubin is a huge leap forward, and Huang’s $1 trillion revenue target is twice what he had previously said publicly. But the stock was still unable to hold the brief gain, retreating to just a 1.6% gain on the day.

That reflects the enormity of the expectations for Nvidia. The stock is priced with major growth already priced in, and investors expect near-flawless execution. And the market is still uneasy about the potential that AI is in a bubble. Nvidia stock would not fare well in a major marketwide correction.

Image source: Getty Images.

That’s especially true given the war in Iran. If it is not resolved quickly and the conflict drags on, it could have major ramifications for the economy, which in turn could affect how much big tech wants – or can – to continue investing at the scale we’ve seen up to this point.