Many consider Nvidia (NASDAQ: NVDA) to be among the most significant stock market triumphs of recent years — a notion that is certainly justified. Nevertheless, the chipmaker is finding it increasingly challenging to satisfy its investors — the company conducted its Q3 FY2025 earnings call on November 20, and while the results surpassed expectations, Nvidia’s share price has been on a downward trajectory since.
Upon the release of the earnings report, Nvidia’s stock was priced at $145.89 — at the time of writing, the value of a single NVDA share had fallen to $132.39, signifying a 9.25% decline over that period and reducing the year-to-date (YTD) returns to 174.85%.
An intriguing contradiction exists — the stock remains a consensus ‘Buy’, with equity analysts from prominent Wall Street firms continually raising their price targets. Despite this, the market appears set on aggressive profit-taking, seemingly indifferent to the abundance of favorable news reports.
Currently, a pressing question arises regarding whether Nvidia’s stock will dip below the $130 threshold, a move that could intensify bearish sentiment and worsen the current selloff.
Are further price pullbacks imminent for NVDA stock?
From a fundamental perspective, the semiconductor business’s value proposition remains unchanged — for a more comprehensive analysis, we should examine the technical factors. Over the past month, NVDA stock has fluctuated within a considerable range, from $132.11 per share to $152.89, with its current trading position near the lower end of that spectrum.
At the same time, when considering the stock’s 52-week range, NVDA finds itself near the upper limits — however, it has struggled to keep pace with the S&P 500, which is approaching a new all-time high.
Recent movements in NVDA’s stock price indicate increasing downward pressure — a crucial support level is established at $131.60, which is highly likely to be tested. Should this level be breached, further declines in price are probable as more investors seek to secure their profits. Conversely, if the support holds, Nvidia stock could experience a recovery, potentially reaching close to or just above $140 once more.
Ultimately, this significant selloff is primarily driven by institutional investors, not retail ones. It is reasonable to expect that larger players will cash in their profits, push the stock below $130, and re-enter long positions at the more favorable price level — and individual investors should consider doing the same if they have the opportunity.
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