Nvidia tests key support as Jensen Huang calls AI selloff a buying opportunity
Nvidia shares are showing signs of recovery following a broad sell-off across the semiconductor sector. Despite the recent correction, CEO Jensen Huang remains optimistic and views the decline as a buying opportunity.
Nvidia has expanded its partnerships with SK Telecom and SK Hynix in the areas of AI infrastructure and high-performance memory. The company also continues to participate in projects aimed at building South Korea's national AI infrastructure.
For Nvidia, this means not only additional GPU shipments but also stronger long-term demand for computing power.
However, investors are currently more focused on a different question: whether the valuations across the broader AI sector remain justified.
Investors begin taking profits
Last week, NVDA shares fell more than 5%, and many market participants are beginning to take a more balanced view of the AI sector's prospects, as reflected by the heavy selling pressure seen on Friday.
Insider selling has also increased. During the first week of June alone, company insiders sold approximately $224.45 million worth of shares, already exceeding the total amount sold during the entire month of December 2025.
50-Day SMA becomes key battleground for Nvidia
The daily chart shows that NVDA has decisively broken below its local trendline and is now approaching the 50-day simple moving average (SMA) near $203.50.
This level is likely to be the key area to watch today. If the stock breaks below this support, it could test the $200 level, with a potential extension toward $195.
Nvidia faces the challenge of rising expectations
Fundamentally, Nvidia remains the primary beneficiary of global investment in artificial intelligence.However, after months of strong gains, investors are paying closer attention to valuation levels and whether the market can continue to justify exceptionally high expectations. The market's reaction to Nvidia's latest earnings report illustrates this challenge.
The company exceeded analyst expectations, with EPS beating estimates by 6.52% and revenue surpassing forecasts by 3.43% ($81.61 billion versus $78.91 billion). Despite these strong results, the market showed little enthusiasm, and NVDA shares closed near their opening price.
Nvidia is finding it increasingly difficult to surprise investors, and eventually the market may become less responsive to positive AI-related headlines. In such a scenario, the broader stock market could face increased correction risks due to the high concentration of capital in AI-related companies.
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