Nvidia stock slips 1.2% as JPMorgan CEO warns AI stocks may be overpriced

Traders Union
All News
Financial News
Nvidia stock slips

Highlights

- Nvidia is trading at $196.37, down 1.2%, as the stock consolidates between $190 and $210 with elevated volume signaling institutional activity.

- JPMorgan CEO praised Nvidia but warned that some AI stocks, including potential high-flyers, may be overpriced.

- While long-term technicals remain bullish, near-term movement depends on upcoming earnings and macro signals.

From a technical perspective, Nvidia continues to trade above its 200-day moving average, which is estimated near the $165–$170 range, confirming that the long-term uptrend remains intact. However, the short-term price structure shows signs of deceleration. The 50-day moving average is likely hovering near $185–$190, placing NVDA slightly above short-term support but struggling to regain upside momentum.

The RSI (Relative Strength Index), while not directly available in Yahoo’s snapshot, is likely neutral-to-slightly-overbought given the extended rally from its October lows near $165. Recent candles on the daily chart reflect indecision — with long wicks and weak follow-through — indicating that investors are pausing to reassess valuation and near-term catalysts. Immediate support lies in the $190–$192 area; a break below that could expose the $180 handle. On the upside, resistance is clearly defined at $202–$210. A close above $210 would trigger a bullish breakout, potentially resuming the prior uptrend.

Nvidia stock price dynamics (September 2025 - November 2025). Source: TradingView

Volume has remained elevated in recent sessions, suggesting institutional activity. However, the lack of strong follow-through above $200 indicates sellers are active at these levels. The technical posture is constructive long-term, but short-term consolidation is expected unless a strong fundamental catalyst re-engages bullish momentum. Until then, price action is likely to remain range-bound between $190 and $210 as investors await clarity.

AI enthusiasm tempered by Jamie Dimon's warning on valuation

Nvidia has been the undisputed leader in the AI hardware space, dominating the GPU market with its A100 and H100 chips, which power large language models and data centers for hyperscalers like Amazon, Google, and Microsoft. Its revenue has surged, bolstered by massive demand for AI infrastructure. The upcoming release of its next-gen Blackwell architecture and growing ecosystem around CUDA software continue to solidify Nvidia’s competitive moat.

Yet, despite this strength, valuation concerns are gaining traction. In a recent interview, JPMorgan CEO Jamie Dimon referred to Nvidia as an “unbelievable company” but cautioned that some AI stocks might be overpriced. His comments come at a time when Nvidia trades at a forward P/E multiple north of 30x, which remains elevated even relative to its historical averages.

Dimon’s remarks highlight a growing concern among institutional investors: while Nvidia’s leadership in AI is clear, the stock may have front-loaded too much of its future growth into its current valuation. The market, flush with AI optimism, may now be demanding more tangible proof of sustained earnings expansion. With U.S. bond yields still high and macro uncertainty lingering, some rotation out of high-valuation tech into value or defensive names could cap Nvidia’s near-term upside.

Range-bound bias with upside potential

In the base case, if Nvidia holds above the $190–$192 support zone and reclaims $210 resistance, it could stage a rally toward $220–$230. This scenario assumes steady AI demand, stable macro conditions, and no negative regulatory surprises. Investors would likely rotate back into growth names if macro data softens and interest rate expectations cool. This path also depends on Nvidia maintaining its dominant share in AI data center deployments without unexpected competitive pressure.

In a bullish scenario, strong earnings or a surprise product announcement — such as ahead-of-schedule Blackwell deployment or new partnerships — could propel NVDA above $230, targeting $250–$260 by year-end. This would require renewed momentum in AI investments, especially from enterprise clients outside Big Tech. A successful expansion into new sectors like automotive AI or edge computing could also serve as a powerful secondary catalyst.

Investor sentiment dipped after filings showed Michael Burry’s Scion Asset Management took significant put option positions against Nvidia in Q3, totaling over $187 million. Known for forecasting the 2008 crash, Burry is now targeting AI stocks as the next potential bubble.

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.