- Nvidia stock fell more than 2% to around $219.50 on Tuesday, reversing part of its recent rally as Treasury yields climbed.
- Semiconductor stocks are leading the broader technology selloff, with the Philadelphia Semiconductor Index down sharply during the session.
- Nvidia's August 26 earnings report is now the key catalyst, while Bank of America remains bullish with a $350 price target.
Nvidia Corp (NASDAQ: NVDA) shares fell more than 2% on Tuesday, August 18, as rising Treasury yields triggered a broad selloff across semiconductor and AI stocks.
Nvidia stock was trading around $219.50 during the US session, down from Monday’s closing price of $225.01. The decline comes after NVDA recently recovered to its highest levels since May, leaving some investors taking profits as conditions across the broader technology sector deteriorate.
The selloff extends well beyond Nvidia. Micron Technology fell almost 6%, while Broadcom lost more than 3%. The Philadelphia Semiconductor Index was down around 3.7%, highlighting the pressure spreading across the chip sector.
Why Is Nvidia Stock Falling Today?
Rising Treasury yields are the biggest immediate headwind facing Nvidia stock today. The 30-year US Treasury yield has climbed above 5.3%, reaching its highest level since 2007, while the 10-year yield is hovering around 4.7%. Higher yields are weighing particularly heavily on technology and AI stocks, whose valuations depend heavily on expectations for future earnings growth.
Oil prices are adding to those concerns. Crude prices have risen as US-Iran tensions intensify following the expiration of a temporary ceasefire, increasing concerns that elevated energy costs could keep inflation stubbornly high. That combination of higher oil prices and rising bond yields is reviving concerns that US interest rates could remain elevated or even rise again.
For Nvidia, therefore, Tuesday’s decline appears to reflect a broader repricing of high-growth technology stocks rather than a sudden deterioration in the company’s AI business.
Nvidia Stock Rally Stalls After NVDA Reaches $225
Tuesday’s pullback follows a strong recovery in Nvidia shares. NVDA closed at $225.01 on Monday, after trading around the $225 level for two consecutive sessions. Nvidia had also significantly recovered from its late-July weakness as confidence returned to the AI infrastructure trade.
That rebound, however, left the stock increasingly exposed to profit-taking as bond yields climbed.
Investors are also becoming more selective across the AI sector. Nvidia remains the dominant supplier of high-end AI accelerators, but concerns surrounding the enormous capital required to finance new data centres have increasingly entered the valuation debate. The result is a market that may require more than strong AI demand to push Nvidia stock substantially higher from current levels.
Nvidia Earnings on August 26 Could Decide the Next NVDA Move
Attention is now turning toward Nvidia earnings on August 26, which could become the next major catalyst for the stock. Investors will be watching data center revenue, demand for Nvidia’s latest AI chips, gross margins and management’s outlook for hyperscaler spending.
The stakes are particularly high following Nvidia’s recent recovery. Strong earnings and guidance could reinforce expectations that AI infrastructure spending remains resilient despite higher borrowing costs. However, disappointing guidance could prove more damaging if investors simultaneously continue reducing their exposure to highly valued AI stocks.
Bank of America remains optimistic heading into the report, maintaining its Buy rating and $350 Nvidia stock price target. The firm has highlighted Nvidia’s substantial free cash flow generation and continued scarcity of high-end AI computing capacity as reasons for its bullish position.
Nvidia Stock Price Analysis: $219 Support Comes Into Focus
The four-hour Nvidia chart shows that the stock remains within its broader August recovery, although short-term momentum is beginning to weaken. NVDA recently pushed toward $228-$229 resistance before losing momentum. The stock has now retreated toward $219.50 and slipped below the Bollinger Band midline, currently around $221.30.
That makes the $219-$220 region an important immediate support area. A recovery above $221.30 could put $225 back in focus, followed by the upper Bollinger Band near $228.80. A decisive breakout above $229 would strengthen the bullish structure and potentially reopen the path toward the previous highs.
However, momentum indicators warrant some caution. The MACD has weakened and the histogram has turned negative, suggesting the recent bullish momentum is fading. If $219 fails to hold, the next notable area on the chart sits around $213-$214, close to the lower Bollinger Band.
Nvidia Stock Outlook Ahead of NVDA Earnings
The Nvidia stock outlook now depends on whether the current semiconductor selloff develops into a deeper correction or remains a short-term reaction to rising Treasury yields.
Holding around $219-$220 would preserve much of Nvidia’s August recovery, while a rebound above $225 could bring $229 back into focus. A break below $219, however, would increase the risk of a deeper pullback toward $213-$214.
With NVDA earnings due August 26, Nvidia’s underlying AI growth story will soon face a much bigger test. Until then, Treasury yields, oil prices and broader semiconductor sentiment are likely to remain important drivers of Nvidia stock.
Nvidia stock is down more than 2% as rising US Treasury yields pressure technology and semiconductor stocks. Higher oil prices and renewed inflation concerns are also weighing on risk appetite ahead of Nvidia’s upcoming earnings report.
Nvidia is scheduled to report its fiscal 2027 second-quarter earnings on August 26, 2026. Investors will be watching data center revenue, AI chip demand, gross margins and management’s outlook for AI infrastructure spending.
A recovery above $221 could improve Nvidia’s short-term technical outlook and bring $225 back into focus. However, continued increases in Treasury yields or further weakness across semiconductor stocks could keep NVDA under pressure before the August 26 earnings report.