Nvidia Slips Into Bearish Trend As HSBC Downgrades AI Giant

Nvidia Corp NVDA is no longer riding the AI euphoria wave. The semiconductor giant has slipped into a strongly bearish trend, with its stock price sinking 26.4% year-to-date and trading well below key moving averages.

Investors who once saw Nvidia as untouchable are now watching as selling pressure mounts and analyst sentiment cools.

Nvidia Stock Chart: Bearish Signals Everywhere

Chart created using Benzinga Pro

Nvidia’s stock chart is flashing warning signs. The stock trades at $96.97, trailing below its eight-day ($107.82), 20-day ($113.117), 50-day ($121.36) and 200-day ($127.08) simple moving averages.

The Moving Average Convergence Divergence (MACD) sits at a negative 5.10, reinforcing the bearish signal, while the Relative Strength Index (RSI) hovers at 30.03 – is dangerously close to oversold territory.

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HSBC Pulls The Plug On NVDA's Upside

HSBC isn't buying into the Nvidia hype, at least for now. The firm downgraded Nvidia stock from bullish to neutral, slashing its price target from $175 to $120, reported Investing. While Nvidia's AI-driven revenue growth remains strong, HSBC sees limited near-term upside.

Slower GPU pricing growth and a transition phase ahead of Nvidia's next-gen Vera Rubin platform could weigh on momentum.

What's Next For Nvidia?

With NVDA stock under pressure, investors are wondering if a turnaround is on the horizon. AI, robotics and autonomous vehicles remain long-term catalysts, but HSBC warns that meaningful revenue from these sectors may take time. For now, Nvidia bulls might need to buckle up—this ride could get bumpier before it gets better.

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