Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign that NVDA is no longer the market leader?

Dubravko Lakos-Bujas, JPMorgan's chief equity strategist, warned of a potential "surprise" shock to the stock market, Bloomberg reported. He's noticed a trend in recent history where gains in popular momentum stocks like NVDA are often followed by corrections. This situation has repeated itself three times since the 2008 global financial crisis.

“One day this may happen completely unexpectedly. This has happened in the past; we’ve had flash collapses,” Lakos-Bujas said in the webinar. “One large fund starts cutting some positions, a second fund hears this and tries to reposition, a third fund is basically caught off guard, and then, you know, we start to unwind more and more momentum.”

He noted the potential for innovation in artificial intelligence as a major source of surprise, emphasizing that these opportunities are dwindling and risks are growing in the background.

Technical analysis of NVDA shares shows that:
→ so far the price is in an upward trend - its contours are shown by the blue channel;
→ yesterday’s close lowered the price to its median line;
→ the $960 level looks like an important resistance.

The all-time high is approximately 100% of NVDA's share price at the start of the year - the price has doubled in less than 3 months, so a correction appears natural in this extremely hot market. It is possible that the price of NVDA may roll back to the lower border of the channel and test the psychological level of $800 per share.

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