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Nvidia (NVDA) investors have experienced a less favorable year compared to Nvidia's usual performance. The company's stock dropped by 10% due to concerns about its exposure to China amidst President Trump's trade war and potential over-expansion of AI infrastructure. Despite a cautious outlook on first-quarter margins, worries among investors persisted.

The stock is currently trading below its critical moving averages, indicating a loss of momentum among traders.

According to Evercore ISI's technical strategist Rich Ross, this decline in Nvidia's stock price could be seen as a normal consolidation period. Ross, who has analyzed market technicals for over 30 years and received top rankings in his field, highlighted that key indicators like the relative strength index (RSI) suggest Nvidia's stock is oversold.

Data from Yahoo Finance reveals that Nvidia's RSI stands at 47, lower than the level during the stock's peak in January. Ross believes that the next likely direction for Nvidia's stock is upwards.

There are expectations for a positive catalyst to boost Nvidia's stock price trajectory. The company's CEO, Jensen Huang, is anticipated to address these at the upcoming GTC event on March 18 followed by a financial analyst meeting. Key areas of focus include details on Nvidia's new chip, Rubin, the AI market potential, and strategies to navigate challenges in China amidst the trade tensions.

Despite possible short-term volatility from market conditions and China-related concerns, analysts like Vivek Arya from Bank of America remain optimistic about Nvidia's fundamentals and consider the stock undervalued based on historical metrics.