What Lies Ahead for Nvidia’s Share Value? Worries Arise with RSI Divergence and Google’s Competitive Threat
The stock performance of Nvidia (NVDA) hints at a negative trend due to the observation of a Relative Strength Index (RSI) disparity in the previous trading week. Typically, such a situation foreshadows a reversal in the price trend, potentially signaling a downtrend for NVDA shares, which have surged by 145% since October 2022.
Intensifying the pressure on Nvidia is Google’s entry into the scene, as the tech giant unveiled that its bespoke chips surpass Nvidia’s renowned A100 chips in terms of speed. This announcement led to a 2.1% decline in Nvidia’s stock on Wednesday, with key rival Advanced Micro Devices (AMD) also witnessing a 3.5% drop.
Google’s fourth-gen Tensor Processing Units (TPUs) boast speeds between 20% to 70% faster than Nvidia’s A100 chips, which are extensively used in the field of artificial intelligence. Additionally, Google asserts that these TPUs are almost twice as energy-efficient, a crucial aspect for top-tier semiconductor performance.
Scrutinize the fundamental aspects of $NVDA stocks. There is no reasonable explanation or support for such a surge in share price. It should be a $180-200 stock.
I’ve divested 90% of my stocks and initiated long-term puts.
How about my short-term puts?
Remarkable gains to date! pic.twitter.com/1aofizSMA7— Harrison | Trader & Investor (@harrisonfromnyc) April 5, 2023
Qualcomm (QCOM) has also announced that its AI 100 chips surpassed Nvidia’s H100 model in tasks like image categorization. These advancements could further sway Nvidia’s market share and stock performance.
The revival of concerns regarding the US economy is also impacting growth-oriented stocks, including Nvidia. The unexpected downturn in the jobless claims report and a softer than anticipated nonfarm payrolls report released on Friday have triggered some investors to liquidate their holdings.
The RSI mismatch in NVDA’s stock chart coupled with increased competition and apprehensions regarding the US economy foreshadow a possible downward trend for Nvidia’s shares. Investors should diligently track these developments and adapt their strategies accordingly.
