$25 billion US bond sale pressures Nvidia stock lower

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Nvidia drops 1.28% to $204.76 today

Highlights

Nvidia launched a $25 billion bond sale to fund AI-driven growth and meet high investor demand after surpassing earnings forecasts.
Quarterly revenue climbed 85.2% year-over-year to $81.62 billion as data center exposure increased and an $80 billion stock buyback was authorized.
NVDA faces bearish momentum with price trading below key averages; 79% probability favors further downside within a $198.87–$210.65 range.

Bond sale and buyback spur expansion amid selling pressure

Nvidia began a $25 billion US bond sale on June 17, 2026, its largest capital raising in five years, to support strategic AI-driven investments and meet investor demand. The company reported a significant 85.2% year-over-year increase in fiscal first-quarter 2027 revenue to $81.62 billion and delivered earnings per share of $1.87, surpassing projections. An $80 billion stock buyback was authorized, while a quarterly dividend increase to $0.25 per share has been scheduled for June 26. Nvidia also advanced its AI infrastructure initiatives with major data center expansions, and in the first quarter of 2026 became the leading supplier by revenue of data center Ethernet switches, reflecting ongoing diversification beyond core GPU markets, though price action has remained under broader selling pressure.

Downside momentum persists as intraday signals skew bearish

On the technical front, NVDA is trading below both its MA-20 and MA-50 on the h1 timeframe, signaling short- and medium-term downside pressure; however, it remains above the MA-200, indicating ongoing structural long-term support. The Ichimoku Kijun level at $208.11 serves as immediate resistance. Momentum readings are mixed: RSI signals a Sell, Stoch RSI and CCI are in oversold territory, and BBP shows sellers dominating intraday action. The Awesome Oscillator also aligns with current selling momentum, while MACD and ADX remain neutral, suggesting limited trend strength. Today’s session saw the price stabilize near the session low after a small downward gap and moderate volatility.

Sideways trading likely as downside risk overshadows breakout

In the short term, NVDA is expected to consolidate within a range of $198.87 to $210.65, which represents a typical volatility band relative to current levels. The probability of an upward move is low at 21%, while there is a 79% chance of further downside. The baseline scenario anticipates continued sideways trading above support, with a bullish move requiring a strong break above immediate resistance at $208.11. If price falls below $198.87, a bearish scenario unfolds, indicating an increased risk of extended downward momentum.

Viktoras Karapetjanc, expert at Traders Union, sees Nvidia’s large-scale bond sale and substantial buyback as clear signals of management’s long-term confidence and access to capital. He notes the strong revenue growth and margin beat underpin bullish fundamentals, even as technicals show short-term selling pressure and consolidation below resistance at $208.11. Macro sentiment remains strong due to Nvidia’s leadership in AI and data center infrastructure, despite short-term volatility. If price can reclaim the $208.11 level, momentum could quickly shift. "I see the strategic moves and robust results as a foundation for renewed upside once near-term risk passes — this is a constructive setup for medium-term buyers."

Earlier, analysts noted that Nvidia's robust revenue growth and capital market activities underscored its long-term potential, even as technical pressures weighed on near-term price action. The current outlook strengthens this view, highlighting that while structural fundamentals remain positive, traders should closely monitor the $198.87 level as a potential trigger for further downside momentum.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.