Selling pressure pushes Nvidia stock lower in today's trading

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Nvidia slides 2.11% today to $174.92

Highlights

Nvidia faces a US class-action lawsuit alleging over $1 billion in concealed revenue from cryptocurrency-related GPU sales during 2017-2018.
A federal judge found evidence that Nvidia's nondisclosure materially impacted its stock price, especially after the November 2018 disclosure.
Nvidia stock is under short-term and long-term selling pressure, expected to trade sideways between $173.09 and $182.95 next week.

Class-action lawsuit advances as investors allege revenue concealment

Nvidia is facing a certified class-action lawsuit in the United States, with investors alleging the company and CEO Jensen Huang concealed over $1 billion in revenue from GPU sales linked to cryptocurrency mining during the 2017-2018 period. A federal judge determined that sufficient evidence exists of a price impact from this alleged nondisclosure, referencing internal communications and a disclosure on November 15, 2018 that was followed by a significant stock price drop. The lawsuit has been approved to proceed as a class action, covering shareholders who purchased Nvidia stock from August 10, 2017 to November 15, 2018.

Anton Kharitonov, expert at Traders Union, highlights that NVIDIA is under sustained selling pressure, trading below all major moving averages. He sees the class-action lawsuit as a key overhang, raising significant risk for investors. Technical momentum is notably weak, with oscillators and price action aligning defensively for further declines. Kharitonov is cautious about a further breakdown, warning that underlying sentiment remains fragile and legal uncertainty could magnify downside. "Given unresolved legal headwinds and clear technical weakness, I see little reason for optimism at current levels."

Viktoras Karapetjanc, expert at Traders Union, emphasizes that NVIDIA’s larger thematic growth narrative is undiminished despite headline risk from the lawsuit. He points to resilient weekly indicator reads and sees the market primed for a potential upside move if resistance gives way. The analyst remains confident, focusing on innovation and sector leadership as positive drivers. "Any temporary volatility creates new entry opportunities — the bullish structure remains intact long term."

Jainam Mehta, market strategist, notes that NVIDIA shows mixed technical signals and elevated short-term risk. He sees an equal chance of reversal or further downside unless price clearly breaks above $182.95 or falls under $173.09. Mehta suggests traders watch for a volatility breakout setup this week. "The current range could offer tactical trades in either direction, so clarity on momentum will be key for entries."

Downside risk rises as momentum weakens despite brief buyer gains

Momentum indicators reflect a loss of traction as the Moving Average Convergence Divergence (MACD) signals a sell, while the Average Directional Index (ADX) remains neutral and weak. The Relative Strength Index (RSI) points to waning strength at 46.39, backed by neutral to oversold signals from the Stochastic RSI and Commodity Channel Index (CCI). Bull/Bear Power (BBP) is elevated at 1.85, so buyers briefly dominate intraday momentum although the reading is overbought. The stock is currently down $3.77 or 2.11% for the session, with a pronounced downside gap near $3.11 at the open. Price trades near the session’s low within a narrow 0.56% volatility range and shows renewed downside pressure intraday. Oscillators generally support further weakness, with some divergence as BBP and short-term HMA are constructive but overall signals tilt negative.

Earlier, analysts noted that Nvidia was facing rising downside risk as persistent bearish technical signals and weak price momentum took hold. The emergence of legal overhang from the class-action lawsuit adds a new dimension to the risk landscape, making it crucial for investors to monitor price action near $173.09 as a pivot for any shift in near-term direction.

Source of Data: NVDA Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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