NVIDIA's stock price is experiencing a correction, having fallen 16% from its October peak to a low of $178, the lowest since December 19. Technical analysis indicates a head-and-shoulders pattern on the daily chart, suggesting further downside to a key support level at $150. This level aligns with the 50% Fibonacci Retracement and is about 15% below the current price. Despite the bearish technical indicators, NVIDIA's strong fundamentals suggest a potential rebound to $200 in the long term.
The stock's decline is compounded by geopolitical tensions and reports of China blocking sales of NVIDIA's H200 chips, which could impact orders worth over $54 billion. CEO Jensen Huang plans to visit China to negotiate potential deals, highlighting the robust demand for NVIDIA's GPUs, which are reportedly sold out. Analysts remain optimistic about NVIDIA's financial performance, projecting significant revenue growth and improved earnings per share in the coming years, despite current market volatility.
NVIDIA Stock Faces Correction Amid Geopolitical Tensions and Technical Patterns
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