The major stock indices continue to be under pressure led by the NASDAQ index which moved down close to 2% before bouncing modestly. The current price is down -1.75%. The S&P index is down -1.07% and the Dow industrial average is down -0.82%..
Shares of Nvidia continue to move lower as has concerns about the AI stocks going too far too fast, and too much debt funding for the AI build weighing on the large cap tech sector.
Recall from earlier this week, Softbank also announced they had divested themselves of all their Nvidia shares.
Technically, looking at the daily chart of Nvidia, the low price today reached $185.35. That was just above the 50 day moving average at $185.14. The price has traded below that moving average going back to September on a number of different occasions, but holding the moving average line today, showed some reluctance to move lower.
If the price were to break that moving average line, the 100 day moving average at $178.61 would be the next key target.
On the positive side, Nvidia produces the chips for the AI build. They are not necessarily spending the money on the AI build. Of course if the building starts to crumble, it would have an impact on demand, but so far indications are for continued build, build. build, and hope for the payback later. That should keep Nvidia supported.
This article was written by Greg Michalowski at investinglive.com.
