Usman Salis
Nvidia (NVDA) kicked off the trading day on shaky ground, stretching out a sharp overnight drop that's got traders watching closely. The pre-market action shows NVDA pulling back in a way that's hard to ignore, setting up what could be a rough start when the bell rings. This comes at a moment when investors are getting jumpy about AI chip stocks, reacting to every headline and market shift.
NVDA Slides to $185.61 in Early Trading
The chart tells a clear story—Nvidia's sitting at $185.61, down 1.31% before the market even opens. According to Stocktwits trader reports, the stock's showing a sharp and steady drop from yesterday's close, hitting multiple lower lows that confirm sellers are in control.
There was a small bounce attempt near the bottom, but it didn't have much muscle behind it. The overall picture? NVDA's losing steam fast, unable to catch any support during the overnight hours. This isn't some messy back-and-forth—it's a clean slide down with no real recovery in sight yet.
What's Behind the Early Weakness?
A few things might be weighing on NVDA this morning. Short-term profit taking could be at play, with traders cashing out after recent volatility before the opening bell. The broader tech space is feeling pressure too, as bond yields stay elevated and growth stocks take hits. Even slight changes in expectations around AI chip demand can move NVDA's price significantly given how heavily the stock leans on that narrative. Plus, ongoing chatter about export restrictions and regulatory uncertainty keeps adding to the cautious vibe around the stock.
In related AI news, a recent report titled underscored how Nvidia’s dominant position in the AI hardware race continues to redefine market dynamics — making today’s pre-market weakness even more notable against this broader backdrop.”
Technical Picture: Sellers Have the Upper Hand
Looking at the technical setup, the chart's showing clear downside continuation with no obvious support level in the pre-market range. There haven't been any strong bounce attempts either, meaning buyers aren't rushing in to defend the price. The chart marks a previous balance point, but NVDA's trading well below it now, confirming that downward pressure hasn't let up.
Usman Salis
