Bearish Risk: Nvidia Sell-off Signals Global Tech Jitters; Indian IT Stocks Under Pressure

Nvidia, a key player in the global AI chip market, has seen its stock fall 21% from its November 2025 peak, extending a sell-off into a third day. This decline is attributed to concerns over the sustainability of AI revenue and broader geopolitical tensions impacting the tech sector, pushing the Nasdaq 100 into correction territory.

While Nvidia is not listed in India, its performance is a significant barometer for global technology sentiment, particularly in the high-growth AI space. A sustained correction in global tech, especially in AI, can lead to reduced IT spending by international clients, directly impacting the order books and revenue growth of Indian IT services companies.

Indian IT majors like TCS, Infosys, Wipro, HCL Technologies, and L&T Technology Services (LTTS) could face negative sentiment. Their valuations are often linked to global tech trends and client spending. A slowdown in AI investments globally might temper growth expectations for these companies, leading to potential downward pressure on their stock prices.

Traders should monitor the trajectory of the Nasdaq 100 and other global tech indices for signs of stabilization or further decline. Key indicators will be the upcoming earnings reports from major global tech firms and any commentary on AI spending trends. Also, watch for FII flows into Indian IT, as sustained outflows could signal deeper concerns.

• •Nvidia shares fell 1% to $166.21.
• •Nvidia marked a 6% decline in March.
• •Nvidia is down 21% from its November 2025 high.
• •Concerns over AI revenue sustainability are weighing on the sector.
• •Broader tech sell-off amid geopolitical tensions is impacting the sector.
• •Nasdaq 100 has entered correction territory.