UPDATE—June 24, 2024: This article has been updated with current share price information.
Key Takeaways
- Shares of AI chipmaker Nvidia tumbled nearly 7% on Monday as the stock continued its sharp retreat from a record high reached Thursday.
- Last Thursday’s intraday reversal in Nvidia shares created a bearish engulfing pattern, a candlestick formation that warns of a potential downside reversal, especially after a significant price advance.
- Investors may keep an eye on chart levels around $119 and $110, both areas where the stock could find support from minor pullbacks over the past three weeks.
Artificial intelligence (AI) chipmaker Nvidia (NVDA) remained in the spotlight Monday as its shares continued falling from the record high reached last Thursday.
Despite little in the way of company-specific market-moving news in recent days, investors may have used a rare moment of broad market sluggishness for profit-taking following the stock’s meteoric rise this year amid the AI boom.
Nvidia shares fell 6.7% to close Monday at $118.11. The stock is down 16% from its all-time intraday high of $140.76 set on Thursday.
Monitor These Levels Amid Bearish Engulfing Pattern
Since finding support around the 50-day moving average in April last year, Nvidia shares have tracked sharply higher, with investors viewing any dips as buying opportunities. However, Thursday’s intraday reversal from their all-time high (ATH) created a bearish engulfing pattern, a candlestick formation that warns of a potential downside reversal, especially after a significant price advance.
If Nvidia’s price continues to retrace this week amid a shift in sentiment, investors may keep an eye on chart levels around $119 and $110, both areas where the stock could find support from minor pullbacks over the past three weeks. A failure to hold these key regions could see the shares revisit a horizontal line near $97 that connects several prior record highs.
Middle Eastern AI Tech Deal
Separately, Nvidia has inked a deal to roll out its AI technology at data centers owned by Qatari multinational telecommunications giant Ooredoo located in five Middle Eastern countries, the Doha-based company’s CEO told Reuters in an interview on Sunday.
While Ooredoo did not disclose the value of the deal, it said it would provide its data center clients in Qatar, Algeria, Tunisia, Oman, Kuwait, and the Maldives with access to Nvidia's AI and graphics processing technology.
"Our business-to-business (B2B) clients, thanks to this agreement, will have access to services that probably their competitors (won't) for another 18 to 24 months," said Ooredoo CEO Aziz Aluthman Fakhroo.
The deal comes at a time when U.S. Officials have tightened export controls on advanced U.S. chips to curb China accessing sophisticated AI technology through the Middle East.
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