NVDA moves lower as sustained seller pressure keeps downside risk elevated

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Nvidia slides 5.21% to $177.02 today

Highlights

Nvidia's board has begun an independent investigation concerning CEO Jensen Huang and alleged ties to a Chinese espionage suspect, raising immediate governance risk.
Nvidia announced a partnership with SK Telecom and Rebellions to develop advanced AI computing systems using its GPUs in SK Telecom data centers.
Shares of Nvidia are down 5.21% to $177.02, trading below major moving averages on negative momentum, with a short-term expected range of $164.78 to $189.26.

Leadership probe and AI partnership drive governance risk and sentiment

Nvidia's board of directors has initiated an independent investigation into reports alleging that CEO Jensen Huang had an extramarital affair with a woman accused of espionage activities tied to the Chinese government, a development disclosed by Yahoo Finance. This heightened governance risk introduces immediate uncertainty regarding leadership and reputation, which has dampened investor confidence and contributed to increased selling pressure. Separately, Nvidia disclosed a collaboration with SK Telecom and Rebellions to build an advanced AI computing system by integrating its GPUs and Rebellions' neural processing units in SK Telecom’s data centers, as reported by Gurufocus. While this partnership positions the company for future growth opportunities in AI infrastructure, sentiment has remained under pressure in the wake of the board investigation.

Oversold oscillators contrast with persistent sell bias and resistance

On the hourly chart, NVDA is trading below the MA-20, MA-50, and MA-200, with the Ichimoku Kijun at $189.53 acting as immediate resistance. Momentum indicators remain negative, as both MACD and ADX signal a sell bias. RSI and CCI are currently in oversold territory, which can imply the potential for a technical rebound, while Stochastic RSI is neutral. Bull/Bear Power readings confirm that sellers are in control, and the Awesome Oscillator remains neutral, highlighting a sharp divergence between deep oversold oscillators and strong downside momentum.

Further downside risk as resistance remains firm in volatile range

In the short term, the expected price range for NVDA is $164.78 to $189.26. The probability of further downside movement is high, while a move back above resistance at $189.53 is seen as unlikely in the current environment. The baseline scenario calls for price stabilization within this volatility band. Should any recovery materialize and NVDA clear the $189.53 resistance, it could trigger renewed buying interest, but failure to hold $164.78 would indicate further downside risk.

Viktoras Karapetjanc, expert at Traders Union, sees Nvidia as facing a near-term credibility test due to the board’s investigation into CEO allegations. He notes that this governance headwind is weighing on sentiment, even as the company advances partnerships in AI infrastructure. Despite negative momentum, Karapetjanc believes Nvidia’s long-term prospects remain robust if leadership risks are managed. "If Nvidia can restore investor confidence and hold above $164.78, I expect renewed demand when the market stabilizes."

Earlier, analysts noted that Nvidia’s performance and broader AI sector trends would be shaped primarily by company-specific catalysts such as earnings updates and strategic partnerships. The emergence of heightened governance risk from the current board investigation marks a significant shift in focus, and traders should closely watch for any breach of $164.78 as a signal of further downside risk.

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.