Nvidia Stock Slides as Company Denies AI Chip Shortage Rumors
Shares fall 2.7% amid market speculation, while technical indicators suggest a potential further decline for the semiconductor giant.
Nvidia (NVDA) shares fell 2.7% on high volume, extending a weekly decline fueled by market speculation about supply shortages for its highly sought-after H100 and H200 AI chips. The semiconductor giant moved to quell these fears, officially stating it has sufficient inventory to meet all customer orders without delay.
The company's clarification came after its stock dropped following what it called regarding the availability of its high-end GPUs. Nvidia denied reports that the chips were “sold out,” asserting that while demand remains strong, it does not prevent the company from fulfilling new orders. The statement also clarified that production of its China-exclusive H20 GPU has no impact on the supply of its other AI chip lines.
Despite Nvidia's official denial, the stock's recent performance has triggered bearish technical signals. According to one analysis, the stock formed a in August, a technical indicator that has historically preceded significant declines in the company's share price. This, combined with a bearish crossover in the Stochastic oscillator, suggests that the upward momentum may be fading.
While technicals point to a potential pullback, with some analysts eyeing a drop below $150, Nvidia's fundamental picture remains robust. The company continues to dominate the AI sector, reporting a in its latest quarter, driven by massive sales in its data center division. Wall Street analysts largely remain optimistic, with most maintaining a “Buy” rating on the stock and some viewing the recent dip as a buying opportunity. Investors are now weighing the company's strong performance and official statements against the market's recent bearish sentiment and technical warnings.