Nvidia’s Losing Streak: What’s Next for the AI Giant?

Nvidia (NASDAQ: NVDA) extends its losing streak to a fifth session, trading at $128.91, down 3.1% from the previous close. Nvidia is still up 166% year-to-date, solidifying its position as a leader in the AI space. But the question on everyone’s mind is: What’snext for Nvidia?

Nvidia Chart Analysis

• Current Price: $128.91
• Key Resistance Levels:
  • $136.15 – First resistance, aligning with the 20-day EMA.
  • $144.46 – Strong resistance from December highs.
• Support Levels:
  • $130.03 – Current support; a break below could lead to further downside.
  • $116.19 – Key medium-term support from October lows.
• Moving Averages:
  • 20-Day EMA: $137.20 – Price remains below this level, signalling short-term bearish momentum.
  • 50-Day EMA: $136.31 – A sustained drop below this level confirms a weakened trend.

Outlook: Navigating Nvidia’s Volatility

Nvidia’s latest decline is prompted by a combination of profit-taking and worries about rising competition from competitors such as Broadcom. The wider tech decline, driven by the Federal Reserve’s aggressive approach, has also increased pressure.

With that in mind, Nvidia’s long-term growth narrative stays strong, supported by its dominance in AI chips and the increasing need for machine learning infrastructure.

Nvidia’s Long-Term Outlook Remains Bright

While near-term volatility persists, Nvidia’s fundamentals and leadership in AI semiconductors remain intact:

• AI Leadership: Nvidia’s GPUs dominate the market for machine learning and AI applications, with no immediate threats to its position.
• Revenue Growth: Despite macro challenges, Nvidia’s revenue is expected to grow 50% YoY in the next quarter.
• Innovation: Investments in AI infrastructure, including software and supercomputing, solidify its long-term potential.

Conclusion

While Nvidia’s recent slump might worry some investors, it presents an opportunity for others to assess entry points. Its AI dominance and strong revenue growth outlook make it a compelling long-term play, but patience is key as Wall Street sentiment adjusts.

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