NVIDIA's recent stock decline has been influenced by a mix of competitive pressures and technical challenges. Broadcom's robust earnings report has intensified concerns about NVIDIA's competitive position in the AI processor market, contributing to the stock's downward movement. Additionally, technical analysts have noted a head-and-shoulders pattern, indicating potential further declines if the stock breaks below the critical $132 support level. Legal challenges have also resurfaced, with a securities lawsuit gaining momentum after the U.S. Supreme Court's decision not to hear an appeal, adding to investor unease. The market remains cautious about potential overinvestment in AI data centers, with revenue concentration risks from a few major customers.
The Graniteshares 2x Short NVDA Daily ETF (NVD) rose 4.91% to $33.15 as of 16:40 on Friday, December 13.