Nvidia Corp (NASDAQ:NVDA) stock slid on Wednesday amid macro pressure, as tech stocks faced valuation concerns, worries about possible Federal Reserve rate hikes, and uncertainty over how quickly AI investments will generate returns.
iShares PHLX SOX Semiconductor Sector Index Fund (NASDAQ:SOXX) is down almost 2%. State Street SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) were down less than 1%.
Nvidia CEO Jensen Huang said the recent global tech selloff created a buying opportunity because the AI infrastructure buildout is still in its early stages.
Huang told Bloomberg on Monday that investors should be "very happy" because the pullback lets them "buy at a discount," adding that "everybody should be very excited."
He said AI will become global infrastructure "just like the internet was infrastructure for the world," reinforcing his view that demand for data centers and chips will continue to grow.
Technical Analysis
Nvidia is sitting in a tight technical spot: it's about 5.7% below its 20-day SMA ($218.21), but essentially flat versus its 50-day SMA ($205.01), which often acts like a "line in the sand" during consolidations.
The longer-term trend remains up, with the stock 6% above the 100-day SMA ($194.25) and 9% above the 200-day SMA ($188.91).
From a trend-structure perspective, NVIDIA still benefits from a bullish crossover context: the 20-day SMA remains above the 50-day SMA, and the golden cross (50-day SMA above the 200-day SMA) that occurred in June 2025 continues to support the longer-term uptrend narrative.
The key question now is whether the stock can reclaim the short-term trend band (20-day area) or rotate down toward the next demand zone near the 100-day.
Top ETF Exposure
- ProShares Ultra Technology (NYSE:ROM): 9.61% Weight
- REX AI Equity Premium Income ETF (NASDAQ:AIPI): 9.71% Weight
- Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (NYSE:USNZ): 9.49% Weight
Significance: Because NVDA carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
Price Action
Nvidia shares were down 1.44% at $205.20 at the time of publication on Wednesday, according to Benzinga Pro data.
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