Nvidia's shares: could this be the fatal blow?
In the world of tech stocks, Nvidia has been experiencing a downturn lately. After a weak market environment over the extended weekend, Nvidia's stock continued to weaken, making it one of the biggest losers in the Dow Jones.
At the close of Xetra trading in Germany, Nvidia was trading at 144.86 euros, a significant drop from the 169 dollar mark it previously held. On Tuesday, the GD50 (at 171 dollars) was breached, considered a warning sign.
However, analysts remain optimistic about Nvidia's stock. The trend towards artificial intelligence is likely to boost Nvidia's business, given that their superchips are still the benchmark in the industry.
DER AKTIONΓR DAILY, a daily newsletter from Germany's leading financial magazine, points out that the 50-day line is important from a technical perspective. From a technical standpoint, the level of 169 dollars is significant as a potential support point for Nvidia's stock. If the stock continues to decline, it may find support again at around 153 dollars.
Investors with a long-term perspective should not be nervous about Nvidia's stock. This sentiment is echoed by the hedge fund D.E. Shaw, which significantly increased its long-term position in Nvidia last quarter by nearly 67%, reflecting strong conviction in Nvidia's leading role in AI and scalable, high-margin business prospects.
DER AKTIONΓR recommends holding Nvidia's stock, which remains promising. However, they suggest setting a stop-loss at 120 euros for Nvidia's stock to limit potential losses.
It's worth noting that the publisher Boersenmedien AG's management and majority shareholder, Mr. Bernd Foertsch, has positions in financial instruments related to Nvidia, which could benefit from the stock's course development.
Nike is also among the biggest losers in the Dow Jones, alongside Nvidia. After about two hours of trading, Nvidia's stock is down by more than three percent.
Despite the temporary sell-off, the future of Nvidia's stock remains uncertain but promising, given the company's leading role in the AI sector.
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