Nvidia (NASDAQ: NVDA) stock price has been one of the best-performing tech stocks of 2023. Since the start of the year, the stock of the chip maker has been up 155%. This has been one of the most significant recoveries in US equities this year. The latest analysis reveals that the bulls are losing momentum.
After a strong surge at the end of May 2023, Nvidia share price faced a rejection from the $420 level. Since then, the stock has plummeted 10.84%. Nvidia stock continued to face selling pressure this week. On Wednesday, the stock slid by 3.05% and closed at the lowest level since May 25.
Nvidia Share Price Tanks As Tech Stocks Experiences Sell-off
AAPL and NVDA are one of the only few tech stocks which surged to a new all-time high in 2023. The rest of the high-capped stocks have also rallied but failed to surpass their 2021 all-time highs. After its bullish Q1 earnings report, Nvidia stock price soared more than 20%, which made it one of the biggest gains in terms of market capitalization in history.
The ongoing tech stock rally has been fueled by the Q1 earnings reports of the tech giants. However, the markets are already becoming euphoric ahead of the FOMC meeting next week. The markets are pricing in a final 25 bps rate hike before a potential pause. At its current price, Nvidia appears to be overvalued considering the macroeconomic conditions.
Nvidia Stock Price May Fill $366-$306 Gap Soon
Nvidia released its Q1 earnings report on May 25. The NASDAQ: NVDA soared on the same day and opened 20% higher than its previous close. This left a massive gap of $306-$366 on the chart. History tells us that these gaps fill sooner rather than later.
Therefore, NVIDIA stock price forecast will be very bearish if the price falls within this gap as it is a very broad trading range. Until this gap is filled, it is very risky to buy NVDA for a longterm. Chances are that the ongoing tech rally could be at its final stages before another pullback in the coming weeks.
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