Saad Ullah
This move has spooked investors, and the stock chart shows Nvidia testing a critical support level that could dictate where it heads next.
Chart Analysis: NVDA at a Crossroads
Nvidia, the world's top AI chipmaker, is caught in U.S.-China tech tensions again. Beijing recently launched a customs crackdown on Nvidia's AI chips, according to reports from unusual_whales and the Financial Times.
Nvidia's weekly chart shows the stock at a make-or-break moment. It's currently testing a support zone that previously launched strong rallies, but momentum is fading. Recent candles show lower highs forming as buyers lose steam. Each push toward overhead resistance has met selling pressure, suggesting institutional caution. If this support breaks, NVDA could slide back toward the mid-$300s to $400s range. The technical setup mirrors the uncertainty from China's new restrictions.
Why This Matters
China represents a huge chunk of global AI demand, so any export disruption hits Nvidia's revenue directly. This crackdown looks like retaliation in the ongoing tech war, especially after Washington tightened its own chip export controls. Nvidia's dependence on specialized semiconductor manufacturing makes it vulnerable to even minor regulatory friction.
The bearish scenario: Extended export restrictions cause Nvidia to lose ground to Chinese competitors while the chart confirms a breakdown to lower support levels.
The neutral scenario: Short-term volatility continues, but diplomatic efforts or exemptions prevent lasting damage.
The bullish scenario: Demand from the U.S. and other markets compensates for Chinese restrictions, allowing NVDA to break through resistance and resume its growth trajectory.
Saad Ullah
