### Nvidia Stock Volatile Amid High Expectations and Recent Success

Nvidia's stock saw notable fluctuations after reaching a record high last Thursday, shortly after announcing its earnings. The stock dipped below its 21-day moving average following an impressive run fueled by the company’s remarkable earnings and sales growth. Specifically, Nvidia's earnings have surged by an average of 236% over the past three quarters, and analysts are predicting a 127% increase in per-share earnings for the current fiscal year.

Despite this extraordinary performance, Nvidia's stock has already experienced a significant rise since hitting a low in October 2022. The stock's latest breakout in October 2023 came from a late-stage base, which inherently carries more risks compared to first- and second-stage formations. As a result, the stock has exhibited increased volatility, with weekly price swings becoming more pronounced and several instances of falling below the 10-week moving average.

Currently, Nvidia’s stock hovers above this critical benchmark but faces potential challenges ahead. Investors should be aware of this volatility and the selling pressure typical of late-stage stock patterns, especially those who have recently bought in at the latest breakout point of 140.76. These investors lack a profit cushion that would protect them during any extended pullback.

For those with earlier investments holding substantial gains, it is crucial to adhere to stock management guidelines, such as scaling out of winning positions in phases. This strategy reduces risk and helps maximize profits. As Nvidia's stock fluctuates near its buy point and remains above the 50-day moving average, investors should carefully evaluate their investment strategies and risks in light of their short- and long-term goals.