Nvidia Stock Plunges Amid Antitrust Probe, Investors Eyeballing Key Technical Threshold

Strategic Insights -

As investors continue to dump Nvidia stock, sending the chipmaker 4% lower on Friday, shares are on track to end the week 14% lower. The stock's decline is amid news of an antitrust probe, with the Department of Justice reportedly investigating the company. Despite the sell-off, Wall Street remains bullish on Nvidia's outlook, with analysts projecting an average price target of $153 a share. However, traders are eyeing the $100 a share psychological threshold and the 200-day moving average as key levels to watch for signs that the stock's rally may be fading.

Key Takeaways:

  • Nvidia stock fell 4.5% on Friday, trading around $102.15 a share, amid a wider tech sell-off in the session.
  • The stock is on track to end the week 14% lower, although it is still up 111% from levels at the start of the year.
  • Nvidia has lost around $500 million in market value from levels in early June, with the firm being valued at $2.53 trillion on Friday.
  • Traders are eyeing the $100 a share psychological threshold and the 200-day moving average as key levels to watch for signs that the stock's rally may be fading.
  • Bank of America strategists reiterated their "buy" rating on the stock, saying that they assume no specific material impact on Nvidia's fundamental opportunity from the antitrust probe.
  • The Nasdaq Composite was down 2.5% at 2:00 p.m. ET, with investors fleeing high-flying growth names after the August jobs report was weaker than expected.

Statistics:

  • Nvidia stock fell 4.5% on Friday, trading around $102.15 a share.
  • The stock is on track to end the week 14% lower.
  • Nvidia stock is still up 111% from levels at the start of the year.
  • Nvidia has lost around $500 million in market value from levels in early June.
  • The firm is valued at $2.53 trillion on Friday.
  • The Nasdaq Composite was down 2.5% at 2:00 p.m. ET.

Sources:

  • Business Insider, "Nvidia stock price drops amid antitrust probe"
  • Nasdaq, "NVIDIA Corp. (NVDA) Analyst Estimates, projections"
  • Bloomberg, "DOJ Reportedly Probing Nvidia Over Antitrust Concerns"
  • Bank of America, "Nvidia Stock Rating: Buy"
  • Business Insider, "Nvidia stock price prediction technical analysis"