Nvidia (NASDAQ: NVDA) is considered by many to be one of the biggest stock market success stories of recent years — and rightfully so. However, it’s becoming increasingly hard for the company to impress its investors — the chipmaker held its Q3 FY2025 earnings call on November 20, and although it was a beat across the board, Nvidia share price has only gone down since.
On the day that the earnings report was released, Nvidia stock was trading at $145.89 — at press time, a single NVDA share was worth $132.39, marking a 9.25% drop in that timeframe that has brought year-to-date (YTD) returns down to 174.85%.
There is an odd discrepancy at play — the stock is still a consensus ‘Buy’, and equity researchers from major Wall Street firms continue to set ever-higher price targets. Nevertheless, it appears as if nothing will stop the market from engaging in aggressive profit-taking — in spite of the plethora of positive news coverage.
Now, the question on everyone’s mind is whether or not Nvidia stock will see prices drop below the $130 mark, in a move that could serve to ignite further bearish sentiment and exacerbate the current selloff.
Is NVDA stock set for further price pullbacks?
Fundamentally, the value proposition of the semiconductor business hasn’t changed — for a more well-rounded overview of the situation, we’ll have to turn to technical analysis. In the last month, NVDA stock has been trading in quite a wide range, spanning from $132.11 per share to $152.89. At present, it is trading near the low of that range.
Simultaneously, when looking at the stock’s 52-week range, NVDA is trading near the upper part — although since these latest corrections, it has been lagging the S&P 500, which is trading near a new all-time high.
The latest developments in NVDA stock price action suggest mounting downward pressure — a critical level of support exists at $131.60, and it will almost inevitably be tested. If it is breached, prices will likely decrease even further, as more and more investors flock to lock in their gains. However, if support is maintained, Nvidia stock could easily see a rebounding rally that brings it back to close to or slightly over $140.
Ultimately, a selloff of this extent is driven by institutional investors — not retail investors. In all likelihood, the big players will lock in the gains, drive the stock below $130, and re-enter long positions at the newfound, more favorable price point — and investors should do the same if they are able.
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