NVIDIA's stock faced downward pressure today, driven by competitive challenges and technical signals. Broadcom's robust earnings report underscored its growing presence in the AI processor market, raising concerns about NVIDIA's competitive position. Additionally, technical analysts have pointed out a head-and-shoulders pattern, indicating potential further declines if the stock breaks below the critical $132 support level. Legal challenges also loom, as a securities lawsuit against NVIDIA gained momentum, adding to investor unease. The market remains cautious about potential overinvestment in AI data centers, with concerns about revenue concentration and market saturation.
The Direxion Daily NVDA Bear 1X Shares (NVDD) ETF, which inversely tracks NVIDIA's performance, rose 2.50% to $6.56 as of 4:40 PM on Friday, December 13.