Shares of Nvidia, long considered the AI sector bellwether, have begun to lag the broader market in recent sessions. Technical analysis shows the company failed to sustain its rally following last year’s new highs and has broken below a key upward-sloping support trendline first tested in mid-2024. Historically, similar breakdowns in market leaders have preceded 10–15% pullbacks in the S&P 500, and a repeat could pressure demand for Nvidia’s high-margin GPU products if enterprise and hyperscale buyers delay new orders in anticipation of lower prices.

Taiwan Semiconductor Manufacturing Company reported a better-than-expected fourth-quarter volume increase for AI-focused wafers and noted strong order visibility from major GPU customers. The foundry’s CEO reaffirmed confidence in a multi-year AI supercycle and signaled demand for next-generation GPU nodes would remain elevated well into 2026. Given Nvidia sources over 80% of its advanced GPU capacity from TSMC, this positive outlook underpins expectations for at least low-double-digit revenue growth in Nvidia’s data-center segment next fiscal year.

Jefferies analyst Blayne Curtis raised his model for Nvidia’s fiscal-year 2027 revenue projections by 8%, citing the company’s newly unveiled roadmap at a recent industry conference. The firm now forecasts Nvidia will grow annual revenue to roughly $90 billion by 2027, driven by continued strength in AI training systems and accelerating adoption of its upcoming Rubin architecture. Jefferies also sees gross margins holding near 70%, supported by Nvidia’s software-driven pricing power and high utilization rates at its chip fabs.