Key Points
- Nvidia (NVIDIA) slipped 2.39% to $185.09, extending declines from last week’s highs near $212.10.
- Investor caution deepened after Peter Thiel’s hedge fund and SoftBank Group sold their Nvidia stakes ahead of earnings.
Global markets turned lower on Tuesday, with traders on edge as Nvidia’s highly anticipated quarterly results approached. The chipmaker, widely seen as the bellwether for the AI boom, has set expectations sky-high following a year of record-breaking performance and massive spending across the AI supply chain.
Nvidia’s AI accelerators and GPUs remain central to the infrastructure driving machine learning and generative AI development. However, recent profit-taking and high valuations have raised concerns of overheating within the broader AI and semiconductor sectors.
Adding to the jitters, a regulatory filing revealed that Peter Thiel’s hedge fund had liquidated its Nvidia holdings, while SoftBank Group confirmed it had sold its 32.1 million shares in October to fund new AI ventures.
The timing of these exits has heightened market caution, with traders bracing for volatility once Nvidia’s earnings drop later this week.
AI Frenzy Meets Bubble Fears
The AI-driven rally that lifted global tech shares throughout 2025 is now drawing comparisons to the 1990s dot-com bubble, with traders questioning whether growth expectations remain sustainable.
Nvidia’s past quarterly earnings have triggered some of the largest single-session swings in market value on record, underscoring how sentiment around the stock ripples across global indices and tech ETFs.
Any sign of slowing data-centre demand or margin compression could weigh heavily on the Nasdaq and S&P 500, where Nvidia remains a top constituent.
Technical Analysis
Nvidia (NVIDIA) trades at $185.09, down 2.39% for the day and about 13% below its recent peak of $212.10. On the daily chart, the price sits below short-term moving averages (5, 10, 30), signalling waning momentum ahead of earnings.
The MACD indicator continues to trend lower, with the histogram deepening in negative territory. Immediate support lies at $180.00, followed by $170.50, while resistance is seen near $192.00–$195.00. A break below $180 could trigger a deeper correction toward $165 if sentiment sours post-earnings.
Broader Market Weakness
Asian equities mirrored the cautious tone, with traders also eyeing Japan’s fiscal developments. The yen extended losses past 155 per dollar, nearing levels that previously prompted government intervention.
Prime Minister Sanae Takaichi is expected to meet Bank of Japan Governor Kazuo Ueda as markets assess Tokyo’s proposed ¥17 trillion ($110 billion) stimulus plan.
The 20-year Japanese Government Bond yield surged to its highest since July 1999, reflecting fears that sustained fiscal expansion could strain long-term debt stability.
Across Asia, traders stayed defensive ahead of the U.S. jobs report due later this week, which may shape near-term expectations for Federal Reserve policy into December.
Cautious Forecast
With investor positioning stretched and AI valuations under scrutiny, Nvidia’s earnings will likely dictate short-term direction for both tech and broader risk assets.
Should the company deliver another blowout quarter with guidance above market forecasts, shares could rebound toward the $195–$200 zone. However, any sign of cooling AI demand or margin pressure could deepen the current correction and spill into the wider tech sector.
