Nvidia stock slips below $100 as Cathie Wood buys dip
The broader macroeconomic backdrop continues to weigh on sentiment toward semiconductor stocks.
As of April 9, 2025, Nvidia Corporation (NASDAQ: NVDA) is trading at $96.30, marking a modest intraday decline of 0.89%.
This comes after a period of heightened volatility, during which the stock briefly broke above the $100 mark before reversing lower. Technically, Nvidia is operating within a consolidating range. Immediate support is situated around $90, a psychological level that has been tested multiple times over the past two weeks. This level has proven resilient and may act as a floor for near-term declines. On the upside, resistance is forming around $105—a zone where upward price movements have consistently stalled.
The 50-day simple moving average is currently trending downward, reflecting a short-term bearish bias. This is compounded by the stock price trading below both the 20-day and 50-day moving averages, suggesting a lack of short-term buying momentum. However, the 200-day moving average remains flat to slightly upward-sloping, signaling a longer-term neutral to mildly bullish outlook. The Relative Strength Index (RSI) is nearing the 30 threshold, which traditionally signals oversold conditions. If the RSI drops further, it could attract technical buyers anticipating a price rebound.
NVDA stock price dynamics (February 2025 - April 2025). Source: TradingView.
The MACD histogram is still in negative territory, but there's a potential for a bullish crossover if buying interest increases. Volume levels have been slightly above average in recent sessions, particularly during sell-offs, indicating that recent declines are being met with substantial participation.
Market context and recent developments
The broader macroeconomic and geopolitical backdrop continues to weigh on sentiment toward semiconductor stocks. Recent escalations in the U.S.-China trade conflict have rekindled fears of supply chain disruptions. The Trump administration has implemented a steep 104% tariff on Chinese imports, with Beijing responding by slapping an 84% tariff on U.S. goods. The escalating tensions raise concerns over long-term supply security and global demand patterns—especially since China is a major consumer of chips.
In the face of this uncertainty, investor sentiment has remained mixed. Notably, Cathie Wood’s ARK Innovation ETF (ARKK) has expressed bullishness on Nvidia, purchasing roughly 343,657 shares over two consecutive trading days. This move suggests confidence in Nvidia’s longer-term prospects despite short-term risks. Nvidia's core business segments—particularly in artificial intelligence, gaming GPUs, and data center computing—remain strong. The company's dominance in AI acceleration and deep learning technologies gives it a competitive moat that few rivals can challenge.
Earnings remain a pivotal catalyst. Nvidia's next earnings report will be closely scrutinized for updates on demand across its AI and cloud infrastructure segments, as well as management's commentary on geopolitical risks.
Price scenarios
In the near term, Nvidia’s stock is likely to remain range-bound between $90 and $105, barring any major news or macroeconomic developments. A breakout above the $105 resistance could open the door to a test of the $110–$115 range, particularly if supported by strong earnings or easing geopolitical tensions. However, if bearish momentum persists and the stock breaks below the $90 support level, a retest of $85 becomes increasingly likely.
Traders should remain cautious and monitor global trade developments and earnings announcements closely. Nvidia's fundamentals remain strong, but technical indicators suggest the potential for further short-term weakness before any sustained upward move. Overall, while near-term volatility may continue, Nvidia’s long-term narrative remains intact for investors with a high-risk tolerance.
Nvidia’s recent weakness is driven more by macroeconomic and political risks than technical factors, with renewed tariff threats under Donald Trump’s trade rhetoric raising investor concerns. Although semiconductors haven’t been directly targeted yet, potential tariffs on Chinese components could disrupt Nvidia’s supply chain and pressure its margins.
