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Nvidia’s share price witnessed a heavy sell-off on Friday as the Nvidia stock tumbled to the tune of 10 percent in the last session of the week gone by. The Nasdaq-listed stock opened lower at $831.50 apiece on Friday and went on to touch an intraday low of $756.06 per share during Friday deals, logging an intraday loss of 10.70 percent on Friday. Interestingly, the darling of US stock market investors seemed less interested in Nvidia shares even after this huge intraday plunge. Comparing the record high touched by Nvidia shares around a month ago, the tech stock has retraced to the tune of 22 percent and yet there were no signs of bottom fishing in this US stock at lower levels. this has put doubt into the minds of US stock market investors as to whether the tech stock has gone under the grips of bears.
According to stock market experts, Nvidia share price witnessed strong selling pressure on Friday as the company’s partner in the hardware business Super Micro Computer (SMCI) declared the results date without sharing the preliminary numbers for the Q1CY24. They said that immediate support for the Nvidia share price today is placed at $740 per share level whereas the stock has strong support placed at $670 to $680 zones. They said that the stock may breach its current support and go below $700 levels if the stock continues to remain under selling pressure till the SMCI Q1 results for CY24 are announced. Super Micro Computer share price tanked over 23 percent on Friday as the stock lost nearly $215 per share against its Thursday’s close of $928.48 per share.
Why is Nvidia share price nosediving
Speaking on the reasons that dragged Nvidia share price on Friday, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “The primary reason for Nvidia share price crash on Friday was the announcement of the next earnings date by SMCI, which is a hardware business partner of Nvidia. Apart from this, weak quarterly results by Netflix also did some damage to the Nasdaq-listed tech stocks. So, much will depend upon the kind of results SMCI declares and we can expect Nvidia share price to remain sideways to negative till the SMCI results are announced.” He said that Super Micro Computer share price lost nearly $215 per share after the NAsdaq-listed company declared the quarterly results date without announcing the preliminary results.
On the technical outlook of Nvidia share price, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi said, “The immediate support for Nvidia share price is placed at $740 apiece whereas the tech stock has made a strong base at $670 to $680 zone. If the selling pressure intensifies on Monday, then in that case we may see the stock breaking down below the $740 level. However, it would be a good bottom fishing opportunity for medium to long-term investors.”
The Anand Rathi expert said that the $670 to $680 support zone is expected to remain a ‘sacrosanct’ support for Nvidia shares. So, one can initiate coverage on Nvidia shares at around $700 apiece levels and maintain the ‘buy-on-dips’ strategy on every 4-5 percent fall till the Nasdaq-listed stock sustains above $670 to $680 apiece levels.
Nvidia share price history
Nvidia share price has erased over $400 billion in market cap since March 8th, 2024. In one month time, Nvidia share price has lost around 15 percent but in YTD time, it has managed to deliver around 60 percent return to its positional shareholders. In one year time, Nvidia shares have emerged as one of the multibagger stocks that the US stock market has produced. In one year time, Nvidia share price has surged over 180 percent.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 20 Apr 2024, 08:32 AM IST
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