NVIDIA Slips, Near Key Support
$NVIDIA(NVDA)$ Drops -1.03%: AI Giant Tests Support at $179, Consolidation Phase Signals Accumulation Opportunity
Latest Close Data
NVDA closed at $179.59 on December 4th, declining -1.03% (-$1.87) from the previous session's $181.46.
The stock remains 15.4% below its 52-week high of $212.19, trading within a consolidation range as institutional flows show mixed signals.
Core Market Drivers
AI sector rotation continues as investors digest Q3 earnings momentum and assess valuation levels ahead of potential Q4 guidance updates. Net capital outflow of $3.81B reflects profit-taking pressure, while short interest at 8.01% indicates moderate bearish sentiment. Broader semiconductor weakness weighs on momentum despite strong fundamentals.
12.3，Nvidia CEO Jensen Huang met Trump on Wednesday, focusing on AI chip export controls. He opposed the GAIN AI Act, arguing that prioritizing U.S. firms before exports would harm American interests more than the AI Diffusion Act. Huang supports export controls but insists U.S. tech leadership must be maintained. He also criticized fragmented state-level AI regulations, urging a unified federal framework to prevent industry stagnation and national security risks.
Technical Analysis
Volume at 165M shares (0.83 ratio) suggests reduced conviction during the pullback.
MACD remains bearish at -2.78 with divergence widening to -1.63, indicating continued downside momentum.
RSI(12) at 43.9 approaches oversold territory, while KDJ shows K-line at 37.9, signaling potential reversal setup near key support levels.
Key Price Levels
Primary Support: $179.11 (today's low) / $178.50 psychological level
Strong Resistance: $181.66 (prior resistance) / $185.00 breakout zone
Immediate Pivot: $181.46 (yesterday's close, now resistance)
Valuation Perspective
Current P/E TTM of 44.45 remains elevated versus sector average but justified by 107.36% ROE.
Forward P/E of 38.82 trades below historical average of 42.71, suggesting reasonable valuation for growth trajectory. P/S ratio of 23.32 reflects premium AI positioning.
Analyst Targets
56 analysts maintain bullish outlook with average target of $250.84 (+39.7% upside).
Distribution: 23 Strong Buy, 36 Buy, 6 Hold, 1 Underperform. Target range spans $138-$433, indicating wide valuation dispersion but strong institutional confidence.
Weekly Outlook
Expect consolidation between $175-$185 range as NVDA digests recent gains.
Breakout above $185 targets $195-$200, while failure below $175 risks test of $165 support. Mixed capital flows suggest accumulation phase for patient investors.
Risk Disclaimer
This analysis is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Please conduct your own research and consider consulting a financial advisor.
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