Is Nano Labs a Buy After a 98% Drop and 1,300 Day Decline?

Nano Labs Is Down 98% From Its High. Is the Worst Finally Over?

Nano Labs Ltd (NA) has officially exited its most extreme drawdown phase as of April 20, 2026, ending a period of intense selling pressure that saw the stock collapse from its peak. While the stock remains down 98.0% from its all-time high of $120.50, the recent price action to $2.39 represents a shift in momentum after 1,376 days in a continuous drawdown state.

The Long Road Back From a 98% Collapse

The decline in Nano Labs has been nearly total, with the stock losing the vast majority of its market capitalization since its peak. Our data shows that the current Drawdown Severity Score™ sits at 12.2, which remains in the "Historic" or red zone. While the stock is technically in a recovery phase, it is important to note that it moved from the red zone to the red zone: a subtle internal shift in severity rather than a leap into a safer category.

The sheer duration of this event is its most defining characteristic. At 1,376 days, this drawdown has lasted significantly longer than the typical volatility seen in the semiconductor and hardware space. We calculate the Drawdown Severity Score™ by weighing the depth of the drop against the time it takes to recover, and NA currently sits at one of the most extreme readings in our database.

Insider Sales and Market Sentiment

Recent news flow around the company has been dominated by insider activity, which often provides context for price movements during a deep drawdown. According to Stock Titan, director Hu Nan has engaged in multiple open-market sales, including a recent transaction of 1,633 shares. This follows a larger sale of 3,900 shares and another transaction involving 2,557 shares, also reported by Stock Titan.

While insider selling can sometimes signal a lack of confidence, the context of ownership is also relevant. Yahoo Finance reports that insiders still maintain a 41% ownership stake in Nano Labs Ltd (NA), suggesting that those running the company still have significant personal capital tied to its future. TipRanks noted that these sales have sparked "fresh investor buzz" as the market attempts to determine if the selling is routine liquidity or a reaction to fundamental hurdles.

Despite the heavy drawdown, there have been brief flashes of optimism. Yahoo Finance recently reported on why the stock was gaining during specific Wednesday trading sessions, though these rallies have yet to make a meaningful dent in the 98.0% total decline from the all-time high.

How This Drop Compares to Nano Labs History

When analyzing the historical context of this move, we face a unique data challenge. Our records show that Nano Labs Ltd (NA) has 0 total historical drawdown events of this magnitude. This means the current 1,376-day decline is the first time the stock has experienced a collapse of this scale since its inception.

The average max drawdown for the stock is currently -98.0%, and the average drawdown duration is 30 days. However, because there are 0 comparable times where the stock dropped 98% or more in the past, we must treat the current recovery with caution. The average duration of comparable drops is officially 0 days because this is an unprecedented event for the ticker.

Investors should be aware of the small sample size caveat. When a stock enters uncharted territory by falling 98.0% and staying there for over 1,300 days, historical averages from shorter, shallower pullbacks lose their predictive power. We are essentially watching the company's first major fight for survival in the public markets.

Navigating the Red Zone

The transition within the red zone suggests that while the bleeding has slowed, the stock has not yet reached a "Safe" or even "Moderate" severity level. The Drawdown Severity Score™ of 12.2 indicates that the risk remains historically high. For the stock to move into a more favorable zone, it would need to sustain a price increase that significantly reduces that 98.0% gap from the $120.50 high.

Our data shows that the stock is currently trading at $2.39. In previous months, we saw director Hu Nan logging sales at prices as high as $3.14, according to Stock Titan. Seeing the stock reclaim and hold those previous insider sale levels would be a necessary technical step toward a more robust recovery.

We will continue to monitor the Drawdown Severity Score™ for any signs of the stock moving into the orange or yellow zones. Such a move would require a decrease in volatility and a consistent upward trend in price that begins to offset the 1,376 days of downward pressure. Until then, Nano Labs Ltd (NA) remains a case study in extreme drawdown duration.