The share price of semiconductor giant Nvidia (NASDAQ: NVDA) has experienced short-term rollercoaster movements, largely driven by market reactions following the Consumer Electronics Show (CES) 2025.
After reaching a new all-time high of $153, NVDA’s stock took a sharp downturn, closing down 6.22% at $140.14.
The decline was attributed to profit-taking after CEO Jensen Huang’s CES keynote focused on future technologies rather than immediate product launches.
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Analysis by charting platform TrendSpider shared in a January 8 X post, noted that Nvidia experienced its worst trading day in five months, with a bearish engulfing candle pushing shares back to the 50-day simple moving average (SMA), a critical technical support level. This sharp drop has raised concerns about whether the stock’s rally is losing momentum.
A sustained break below the 50-day SMA could signal further downside while holding this level might indicate recovery. Despite the short-term dip, Nvidia has already achieved a key milestone by claiming the $150 mark in 2025.
Nvidia’s stock buying proposition
During his CES address, Huang painted an optimistic future for the chipmaker, showcasing Nvidia’s continued dominance in the artificial intelligence (AI) space. He unveiled new GeForce GPUs and Project Digits aimed at advanced AI workloads and shared a vision of 1 billion robots, 10 million factories, and 1.5 billion autonomous vehicles powered by Nvidia.
Huang also highlighted the company’s next-generation Blackwell AI chips, which are now in full production and are seen as bullish for Nvidia’s future.
With solid fundamentals, the current Nvidia downturn could represent a classic buying opportunity. The stock remains in an uptrend, with key support levels at $136 to $137, suggesting the dip might be temporary in a longer-term growth trajectory.
At the same time, Wall Street analysts are also projecting a bullish outlook for the technology company. As reported by Finbold, Bank of America’s (NYSE: BAC) Vivek Arya reinforced optimism for 2025, reiterating Nvidia as a ‘Buy’ and the sector’s top pick, with a price target of $190. Indeed, this target aligns with key market expectations of the NVDA share price, hitting a target of $200.
Nvidia stock cautionary take
However, caution is warranted. A sustained technical breakdown could pose challenges, and a potential slowdown in the AI space might temper enthusiasm around the stock.
Investors should weigh their risk tolerance and time horizon carefully. While long-term AI and data center growth make Nvidia attractive, considering stop-loss orders or waiting for stabilization could be an ideal strategy.
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