NVIDIA Corp (NASDAQ: NVDA) shares fell 1.94% to $225.90 on Tuesday, underperforming the broader market despite strength in growth stocks. The decline occurred as investors rotated into defensive sectors, with utilities gaining 1.08%.

The Nasdaq Composite gained 0.16%, while the S&P 500 fell 0.38%. The technology sector rose 0.57%, ranking second among major sectors. NVIDIA lagged its tech peers by roughly 2.5 percentage points. The advance-decline ratio stood at 0.6, indicating broad market weakness despite sector-specific gains.

Technical Indicators Remain Bullish

Despite the daily loss, NVIDIA remains above its 20-day, 50-day, 100-day, and 200-day simple moving averages (SMA). The structure supports a longer-term uptrend:

• 20-day SMA: $220.49
• 50-day SMA: $211.23
• 200-day SMA: $196.90

Momentum indicators remain constructive. The Moving Average Convergence Divergence (MACD) is above its signal line with a positive histogram. The stock trades near the upper end of its 52-week range of $164.07 to $236.54.

Traders may watch $228 as near-term resistance. The $190-$197 area could provide longer-term support, anchored by the 200-day SMA at $196.90.

Analyst Outlook and Ratings

NVIDIA carries a Buy consensus rating with an average price forecast of $349.15. Recent analyst actions include:

Citigroup raised its price forecast to $315 from its previous level on Aug. 27 while maintaining a Buy rating.

What the Numbers Show

NVIDIA’s Benzinga Edge scorecard highlights a divergence between growth and valuation metrics. The stock scores 98.07 for Growth and 97.37 for Quality, but only 6.74 for Value. This suggests that while business quality and growth profiles remain strong, the current valuation leaves little room for error, keeping investor focus tightly on execution and future growth delivery.

ETF Exposure

NVIDIA holds significant weightings in several ETFs, making it sensitive to fund flows:

• Franklin Focused Dynamic Growth ETF (NASDAQ: FFOG): 9.73%
• First Trust Innovation Leaders ETF (NYSE: ILDR): 9.79%
• Xtrackers Net Zero Pathway Paris Aligned U.S. Equity ETF (NYSE: USNZ): 9.94%

Six-year-old Nvidia Corp. (NASDAQ: NVDA) A100 chips retain a residual value of nearly $5,000 each, challenging investor Michael Burry's assertion that Big Tech firms are overstating profits by depreciating AI hardware over extended periods.

Silicon Data estimates the A100's residual value at $4,956, a figure that has remained roughly flat near $5,000 since late 2025. This stability arises because rising rental income offsets the typical decline associated with aging hardware. The estimate reflects the GPU's worth based on future rental income, factoring in utilization and operating costs, rather than second-hand sale prices.

Why Old Nvidia Chips Still Pay

Older Nvidia GPUs do not become obsolete upon the release of newer generations. Chips such as the A100 shift from cutting-edge training to inference, fine-tuning, and lower-cost workloads, extending their economic life. CoreWeave Inc. (NASDAQ: CRWV) signed a customer contract for A100 GPUs extending through 2029, nearly a decade after the architecture debuted.

Burry estimated last year that hyperscalers could understate depreciation by roughly $176 billion between 2026 and 2028 by stretching the useful lives of computing equipment. Longer useful lives reduce annual depreciation expenses. Meta (NASDAQ: META) stated in early 2025 that extending the useful lives of certain servers and network assets to 5.5 years would cut that year's depreciation expense by roughly $2.9 billion.

Burry argued in July that continued demand for older GPUs does not prove depreciation schedules are correct, noting, "A chip can rent and still depreciate very fast economically."

Market Signals and Infrastructure Funding

The economic lifespan of Nvidia's chips is critical as Wall Street mobilizes capital for AI infrastructure. Nvidia partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR on platforms aimed at mobilizing more than $500 billion for AI infrastructure. CEO Jensen Huang stated lenders would consider utilization, cash flow, and residual value.

Kalshi traders bet on stable A100 rental prices. Kalshi's year-end market gives A100 compute about a 74% chance of finishing above $1.39 per GPU-hour, compared with a current rental price of roughly $1.29 on Silicon Data's A100 index. Kalshi Research noted in July that its A100 forward curve remained broadly flat into 2027, suggesting traders expect rental prices for the six-year-old chip to remain relatively stable. Rental prices for Nvidia's four-year-old H100 chips have also risen sharply recently.

What the Numbers Show

The divergence between Burry's depreciation warning and market data highlights a structural shift in asset valuation. While accounting rules focus on historical cost allocation over time, the secondary rental market values assets based on forward-looking cash flows. The fact that a six-year-old chip retains 99% of its initial implied value ($4,956 vs ~$5,000 baseline) suggests that the "useful life" for depreciation purposes may be decoupling from the "economic life" perceived by infrastructure investors relying on residual value metrics.