What's Going On With Nvidia Stock On Friday?

NVIDIA Corporation NVDA is trading lower today. New Street Research analyst Pierre Ferragu downgraded NVDA from Buy to Neutral.

In another development, European Union competition chief Margrethe Vestager has reportedly highlighted a significant “bottleneck” in the Nvidia AI chips supply.

Despite the concern, regulators have not yet decided on any specific actions to address the issue. Vestager stated that they are still in the preliminary stages of investigation, asking questions but not yet taking regulatory action, reported Bloomberg.

Nvidia has become a focal point for regulators due to its significant role in the artificial intelligence (AI) sector. The company’s GPUs are essential for data centers, making them highly sought after by cloud computing providers.

Nvidia’s H100 processing units have secured the company over 80% market share, outpacing competitors Intel Corp. INTC and Advanced Micro Devices Inc. AMD.

Also Read: Is Nvidia Defying US Export Controls? What’s Going On?

Vestager mentioned that while secondary markets for AI chips could promote innovation and fair competition, companies with a dominant market position might face future restrictions.

“If you have that kind of dominant position in the marketplace, there are things that you cannot do that a small company can do,” she remarked, which the report highlighted.

Demand for the H100 is so high that some customers face a six-month wait to receive it. Nvidia has since released even more advanced versions, including the H200 and Blackwell B100 and B200, which are crucial for companies in the AI race.

Nvidia stock gained over 202% in the last 12 months. Investors can gain exposure to Nvidia through SPDR S&P 500 SPY and iShares Core S&P 500 ETF IVV.

NVIDIA Stock Prediction 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Nvidia, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For NVIDIA, the 200-day moving average sits at $72.97, according to Benzinga Pro, which is below the current price of $127.21. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

Price Action: NVDA shares are trading lower by 0.83% at $127.21 at last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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