In the midst of economic uncertainty causing turbulence in the equities market, Nvidia (NASDAQ: NVDA) encountered significant challenges in September. The semiconductor giant faced a steep decline of over 9% in one of its worst weeks in recent history, struggling to hold above the $100 support level. Closing at $102 on September 6, NVDA saw a daily drop of over 4%, reflecting an overall decline since June when it briefly held the title of the world’s most valuable company with a market capitalization of $3.3 trillion.
Concerns about a potential downside for NVDA in the upcoming weeks surfaced as technical indicators painted a bearish picture. CyclesFan’s analysis showed NVDA closing below the 20-week moving average, hinting at a possible retest of the lower Bollinger Band last seen in October 2023. The widening Bollinger Bands indicating increased price volatility added to the stock’s struggle for stability.
Experts cautioned of further downside as NVDA remained vulnerable below the 20-week moving average, projecting a retest of the lower Bollinger Band within the $84 to $102 range. Despite the negative outlook, NVDA might find temporary support at the lower band, creating a potential buying opportunity if it enters “oversold” territory.
The negative market sentiment surrounding NVDA was exacerbated by investor concerns following a mixed U.S. jobs report and antitrust investigations by U.S. authorities. Additionally, the company’s stock performance was likened to that of a penny stock due to significant price volatility and market cap fluctuations.
Analysts at TipRanks presented a mixed outlook for NVDA, forecasting a potential 47% upside over the next 12 months but also highlighting the wide range of price targets from $90 to $200. While Nvidia’s AI boom fueled previous rallies, sustained recovery in the short term hinges on market sentiment and the ability to maintain support above $100.