Nvidia shares experienced a decline on February 3, 2025, following the announcement by the Trump administration regarding the imposition of tariffs on major trading partners. The tariffs, which include a 25% levy on imports from Mexico and Canada, and a 10% tariff on goods from China, have raised concerns about a potential global trade war impacting the semiconductor industry, particularly affecting Nvidia’s stock performance.
- Nvidia shares fell due to tariff concerns.
- Institutional selling indicated by rising wedge breakdown.
- Key support levels: $96, $76, $50.
- Resistance levels to watch: $130, $150.
- RSI indicates increasing selling momentum.
- Nvidia shares still up 80% over 12 months.
The recent downturn in Nvidia’s stock is attributed to broader market concerns, including the rise of DeepSeek, a Chinese startup offering a low-cost AI model that could challenge Nvidia’s market position. The stock fell more than 2% to approximately $117 in late trading on February 3, following a 16% decline the previous week. This has led to fears that investment from major tech companies in Nvidia’s high-priced AI products may diminish.
Key statistics include:
- Nvidia shares have lost nearly 25% of their value since reaching a record high in January 2025.
- Despite the recent losses, the stock is still up about 80% year-over-year.
- Trading volume was the highest since August 2023, indicating significant institutional selling.
Investors are advised to keep an eye on critical support levels. A breakdown below the 50-period moving average could see shares drop to around $96, with further support at $76. A close below this level could lead to a more substantial correction towards the psychological $50 mark. Conversely, if the stock recovers, resistance levels to watch are at $130 and $150, where selling pressure may re-emerge.
The combination of tariff announcements and competitive pressures from new market entrants like DeepSeek presents a challenging environment for Nvidia. As the situation develops, investors should remain vigilant about market Trends and potential shifts in stock performance.
