Nvidia Technical Analysis Flashes Warning As NVDA Stock Slips Below Key Moving Averages, But Analysts Still See 18.11% Upside: Here's More

Nvidia Corp‘s (NASDAQ:NVDA) shares slipped below its short-term moving averages, indicating a potential test for its support levels near the 200-day moving averages amid CNBC’s Jim Cramer‘s warning on the semiconductor stock.

What Happened: From a technical perspective, the analysis of daily moving averages indicates that the stock may be under pressure in the short term.

The stock ended at $130.95 apiece in after-hours on Monday. This was below its eight and 20-day simple moving averages, of $138.04 and $139.83, respectively. As per Benzinga Pro data, its current stock price was also lower than the 50-day moving average of $139.69.

The stock was above its 200-day moving average of $115.52, which implies that it could still be in a long-term uptrend while it is testing fresh support levels near the average value.

This trend also indicates that the stock could be in a consolidation phase. On the other hand, the relative strength index of 40.18 suggests the stock is in a neutral zone and is neither overbought nor oversold.

See Also: Jim Cramer Warns Nvidia’s ‘Vicious’ And ‘Fast’ Reversal Is Coming Amid 174% Surge This Year And China Antitrust Probe

Why It Matters: Cramer cautioned investors about Nvidia, through an X post on Monday, predicting a potential market correction for the semiconductor giant that has seen its value surge 174% this year.

"Still no crescendo moment in Nvidia. It will happen, just not yet….the reversal will be vicious though….and fast," CNBC's Cramer wrote on X, formerly Twitter, as the stock declined 1.68% to close at $132.00.

The warning comes as Nvidia faces heightened scrutiny in China, where authorities launched an antitrust investigation last week into the company's 2020 acquisition of Mellanox Technologies.

The probe examines potential anti-competitive practices, including whether Nvidia limits competition by bundling its AI chips with Mellanox's NVLink technology.

Steven Strazza, the director of research at All Star Charts, had a contrarian view, in an X post he said, “Momentum not even close to oversold.”

He added that semiconductors are getting back in gear and the magnificent seven are making new all-time highs. As per his analysis the stock has, “Very clean and clear support level holding.”

“Only thing missing was a little shakeout, and we got it today,” he added.

What Are Other Analysts Saying: TF Securities analyst Ming-Chi Kuo expects the investigation to remain unresolved in the near term, drawing parallels to Qualcomm Inc‘s (NASDAQ:QCOM) 15-month antitrust case in China.

According to Benzinga, Nvidia has a consensus price target of $170.56 based on the ratings of 40 analysts. The highest price target out of all the analysts tracked by Benzinga is $220 issued by Rosenblatt as of Nov. 21, 2024. The lowest target price is $120 issued by New Street Research on Aug. 6, 2024.

The average price target of $154.67 between DA Davidson, Phillip Securities, and Truist Securities implies an 18.11% upside for Nvidia.

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