NVIDIA shares fall by 16% – what will be required to stop the slide News ad

Nvidia Corp. NASDAQ: NVDA The shares returned to their minimums of the week on January 30. It was destroyed by more than 16% per week, the question in the head of many investors is that you need to stop the slide?

Nvidia today

$ 122.71 -0.99 (-0.80%)

From 13:05 on East

This is a fair market price provided by Polygon.io. Learn more.

52-week range

$ 60.70

▼

$ 153,13

Dividend yield

0.03%

P/e ratio.

48.26

Value is valuable

$ 166.23

The latest news leading to NVDA shares comes from Rumblings that the Trump administration may impose export restrictions on the company’s chips in China. This is in response to DeepSeek, a large language source model (LLM), which China, according to reports, developed about $ 6 million.

To put this in the context, Meta PlatForms Inc. NASDAQ: met Recently announced plans to spend $ 65 billion on updating its infrastructure of AI only in 2025. And with the AI ​​sector, still at the extension stage, a huge number of these $ 65 billion will be spent on equipment in the form of graphic processors from NVIDIA.

Investors sold a large extent in the news, and the explanation of the knee reflex was that companies would curb the costs of the AI ​​infrastructure and begin to use a less expensive open source model.

There are several reasons to discuss this. First, since DeepSeek got on the stage, many analysts have already indicated restrictions and biases built into Deepseek. They also note that it is likely that the Chinese LLM used a significant number of NVIDIA graphic processors in its creation.

If this were so, he probably awarded the NVDA shares. Instead, a more likely cause of price action is that investors saw the opportunity to do what they wanted to do for some time with many Technological promotionsThe field, that is, take a small profit and remove the price of shares below. In other words, never allow the crisis (even made) to be wasted.

NVIDIA is still traded with more than 44-time profit and is related to the sale price more than 49 times. There is no doubt that even in this rollback, investors continue to pay the Promotion Prize.

Nevertheless, there are times when the action is worthy of the premium price. And this seems to take place with NVDA shares. The company launched its Blackwell Chip and reports excess demand, despite the fact that it is 100%.

Critics will say that the existence of inexpensive LLM will lead to a decrease in the requirement curve, but this may not be a good bet. Palantir Technologies Inc. NASDAQ: PLTR General manager Alex Karp often commented on the advantages of his own LLM of his company, which makes AI more than “just a toy”. Corporations understand that the process of developing more advanced versions of artificial intelligence models begin.

This search for innovation is a real driver for expenses for AI, and not in maintaining the status -kVO. For this industry, they will still need equipment. And Nvidia remains a clear leader in this area.

It is important to note that NVIDIA shares continue to be under pressure, despite the fact that analysts are repelled aside DeepSeek News. From Monday, January 27, Kantor Fitzgerald and Morgan Stanley NYSE: MS Confirmed their excess ratings for promotions. Tigress Financial updated NVDA from the purchase to a strong purchase and raised the target price from $ 170 to $ 220.

Traiders cannot but notice that NVDA shares have recently decreased below the 200-day simple sliding medium (SMA). Technical analysis is not an ideal indicator, but this is almost always a bear indicator, which suggests that the long -term direction of the reserve has changed.

The shares first fell below the 200-day SMA on January 24, but recovered at the beginning of next week. It is also important to note that this very last fall occurs to the easier volume, which may indicate the lack of conviction. The relative force indicator (RSI) also moves to the septum range of about 38.

If the action continues to go below, how low it can go? The diagrams suggest that if a violation of the 200-day sliding average, the shares will be able to reach their minimum in September 2024 about $ 103.

Investors should expect that the price action will be intermittent before the company’s profit report in February. It is unlikely that institutional investors will want to put their flag in a particular camp. However, this may work in the interests of retail investors who are convinced to buy this fall.