Nvidia Shares Face Technical Peak Risk After Reaching Record High

what happened

Dow Jones Newswires, citing Barron's, reports that Nvidia shares reached a record high last week and are now trading at about $229. The earnings season could extend the move, with many of the chip maker's customers expected to post strong results in the coming weeks.

Still, the weekly chart covering roughly the past 18 months looks like a “big, bearish, rising wedge,” according to Walter Zimmerman, chief technical strategist at ICAP Technical Analysis. He said the narrowing support and resistance lines suggest fading upside momentum even as the stock continues to set all-time highs.

A firm weekly close beneath the support line would constitute a sell signal, although that has not occurred so far. Zimmerman identified a monthly close under $204.84 as the “first warning signal”; below $185.94, he said, “the real problems would begin.” The first daily level that could test whether the pattern marks a peak is $210.

Separately, the Financial Times reported Saturday that Nvidia is discussing a purchase of, or a larger investment in, open-weight model developer Reflection AI. Nvidia did not immediately respond to a comment request Monday. The stock has gained 26% over the past six months.

why it matters

Investors will weigh upcoming evidence of AI-chip demand from Nvidia’s customers against technical levels that could signal weakening momentum in the shares.

instruments