Nvidia stock slips to $176 as AI momentum stalls on regulatory concerns

Traders Union
All News
Financial News
Nvidia stock slips

Highlights

Nvidia stock pulled back to $176 as momentum in the AI sector shows signs of cooling.

The company remains technically strong but faces headwinds from potential regulatory shifts and market saturation concerns.

Analysts remain bullish, with short-term targets ranging from $185 to $190.

NVDA remains technically robust. The stock is trading comfortably above its 20-day, 50-day, 100-day, and 200-day exponential and simple moving averages, confirming a well-supported uptrend. The relative strength index (RSI) is currently near 74, indicating that the stock is in mildly overbought territory. While not extreme, this level suggests short-term caution is warranted as some profit-taking may occur.

The Moving Average Convergence Divergence (MACD) line remains above the signal line and in positive territory, reinforcing bullish momentum. The rate of change (ROC) indicator is also positive, consistent with strong price acceleration. Nvidia recently cleared a key resistance level near $172, which now flips to immediate support. Below that, the next reliable support band lies in the $165 to $168 range, where the 50-day moving average currently converges.

Nvidia stock price dynamics (May 2025 - July 2025). Source: TradingView

On the resistance side, bulls are eyeing the $178 to $180 zone, which represents a near-term test of overhead supply. A confirmed breakout above $180 could pave the way toward $185, and ultimately $190, which aligns with some of the more aggressive analyst forecasts. Until then, the $172 to $180 band will serve as the key battlefield for short-term traders.

Market context and sentiment

The broader backdrop for Nvidia remains highly favorable. In July, Nvidia briefly surpassed the $4 trillion market capitalization mark, becoming the world’s most valuable company before pulling back modestly. The rally has been driven by continued demand for AI chips, particularly the Blackwell architecture, which is being deployed by major hyperscalers including Amazon, Microsoft, and Google.

Loop Capital recently raised its NVDA price target to $250, citing Nvidia's first-mover advantage in generative AI and unparalleled dominance in data center GPU sales. Mizuho also boosted its target to $185, reflecting strong customer demand and expectations for solid earnings growth through the remainder of the year. Nvidia's next earnings report, scheduled for August 27, is widely expected to show another quarter of significant year-over-year growth.

However, risks remain. Concerns are growing around potential saturation in the high-end GPU market and the long-term sustainability of AI spending. Barron’s has flagged underwhelming guidance from semiconductor peers such as ASML and Intel, which could indicate broader sector headwinds. In addition, DA Davidson has cautioned that Nvidia’s growth may peak in 2026, warning of potential downside toward $135 if market expectations reset or if regulatory actions tighten further.

Price outlook and forecast

Looking ahead to Q3 2025, Nvidia appears poised to continue its bullish trend, especially if upcoming earnings exceed expectations. In the base-case scenario, the stock is likely to trade in a rising channel with a short-term target of $185, potentially reaching $190 if macro conditions stay favorable and AI investments remain elevated.

The near-term support zone sits at $170 to $172. A break below this range could trigger a pullback toward $160, with deeper correction risk toward $150 in the event of disappointing guidance or macro shocks. The downside case also includes a bearish target near $135, though that would likely require a broad-based tech selloff or major disruption in chip supply chains or policy.

Nvidia’s 2025 surge is fueled by strong macro trends and massive AI investment, with Alphabet committing over $85 billion toward AI infrastructure. This underscores Nvidia’s central role in Big Tech’s ongoing AI arms race.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.