Nvidia Faces Stiff Market Headwinds as Stock Plummets

Nvidia Corp NVDA has seen a significant downturn recently, losing its momentum from the AI boom. The semiconductor leader’s stock price has decreased by 26.4% year-to-date and is currently trading below key moving averages, indicating a transition into a strongly bearish trend.

Once viewed as a market darling, Nvidia is now grappling with increased selling pressure and a decline in analyst enthusiasm.

Bearish Indicators on Nvidia’s Stock Chart

Chart created using Benzinga Pro

Nvidia’s current price stands at $96.97, significantly below several key moving averages: the eight-day at $107.82, the 20-day at $113.117, the 50-day at $121.36, and the 200-day at $127.08. These figures signal a concerning trend for investors.

Additionally, the Moving Average Convergence Divergence (MACD) indicator is recorded at a negative 5.10, further emphasizing the bearish outlook. The Relative Strength Index (RSI) is at 30.03, nearing oversold territory and indicating potential weakness.

Read also: As Nvidia, Apple And Other Mag 7 Stocks Wipe Out Over $1 Trillion In Investor Wealth On Thursday, Top Analyst Warns Of ‘Economic Armageddon’ For Tech Sector If Current Tariffs Remain

HSBC Downgrades Nvidia’s Stock Outlook

In a notable shift, HSBC has downgraded Nvidia’s stock from bullish to neutral and reduced its price target from $175 to $120. The firm reported that although Nvidia’s revenue from AI continues to grow, it anticipates limited near-term growth potential.

Factors influencing this outlook include slower price growth in GPUs and the anticipated transition phase related to Nvidia’s next-generation Vera Rubin platform, which may dampen market momentum.

Future Prospects for Nvidia

As NVDA’s stock faces mounting pressure, investors are keenly interested in whether a recovery is on the horizon. Long-term growth catalysts in AI, robotics, and autonomous vehicles are still in play. However, HSBC cautions that significant revenue from these sectors is not expected in the near term. Investors focusing on Nvidia may need to brace for ongoing volatility before any signs of recovery emerge.

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