Nvidia shares are coming under pressure amid a rotation of capital within the AI sector and near-record stock sales by corporate insiders. In premarket trading, the stock fell below the $204.50 support level, increasing the risk of a decline toward the psychological $200 mark.
Nvidia has been weighed down by a shift in investor positioning within the AI sector. Investors are gradually reducing exposure to semiconductor companies while increasing allocations to software developers and major cloud providers.
The primary concern is that hyperscalers' spending on AI infrastructure could begin to slow over the next several years. This poses a risk for Nvidia, whose premium valuation depends heavily on continued large-scale capital expenditures by Microsoft, Amazon, Alphabet, and Meta.
An additional source of pressure comes from near-record insider selling across the U.S. stock market. During the first half of 2026, corporate insiders sold $77.6 billion worth of shares, 20% more than a year earlier.
This marks the second-highest level of insider selling in more than 20 years, surpassed only by the first half of 2021.
Nvidia loses momentum below $204.50
Nvidia failed to break above the $213 resistance level, triggering a decline below the 50-day simple moving average (SMA).
In premarket trading, the stock fell below the important $204.50 support level. If it remains below this area after the regular trading session opens, the probability of a move toward $200 will increase significantly.
A decisive break below $200 could trigger a retest of the 200-day simple moving average (SMA) near $192.50.
To restore bullish momentum, Nvidia needs to reclaim and hold above $204.50. If that happens, the stock could retest the next resistance around $210.
Nvidia volatility rises amid growing profit-taking
Volatility continues to increase both on the daily chart and during intraday trading as the earnings season gathers pace. The ongoing rotation within the AI sector, combined with near-record insider selling, points to growing profit-taking among investors.
This is likely to keep short-term pressure on Nvidia shares.
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