Nvidia stock price was down in the premarket session on Monday as focus returned to trade tariff wars. The stock has been on a steep decline for the last three weeks and was at $110.53, down by 1.53% at the time of writing. Friday’s gains were attributed to a forecast-beating earnings results posted by Broadcom, but the excitement seems to have fizzled out.
Recession Talk, Tariffs Spark FUD Sentiment
US President Donald Trump spooked investors on Sunday after stating that the US economy is “in transition”, falling short of admitting a potential looming recession. Instead, Trump stated that tariffs against Canada and Mexico could “go up”, fanning the flames of a fear uncertainty and doubt (FUD) sentiment in equities markets. Nvidia’s operations in Mexico are likely to feel the heat as the tariff war gains momentum.
Semiconductors are in Trump’s tariff package and Nvidia stock price will likely be subdued as the business environment turns sour. Furthermore, but failing to outrightly deny the possibility of an onset of recession, Trump might have inadvertently added insult to injury.
Nonetheless, Nvidia (NASDAQ: NVDA) recently revealed that demand for its Blackwell chips is still strong. That is likely due to stable expenditure by tech giants like Alphabet, Meta, Amazon and Microsoft. However, concerns are emerging that the chips are finding their way into China despite an existing ban by the US Government. That could potentially complicate matters for Nvidia in the coming weeks.
Nvidia Stock Price Prediction
The momentum on Nvidia stock price signals control by the sellers as resistance persists at the $110.60 level. NVDA price will likely go lower and find the first support at $108.95. However, an extended control by the sellers could lead to further losses to break below that level and test the second support at $108.00.
On the other hand, breaking above $110.60 will shift the momentum to the upside, with the first resistance likely to be at $116.60. The downside narrative will be invalid if the price breaks above that level. A stronger upward momentum could take NVDA price higher to encounter the second hurdle at $112.80.
The post Nvidia Stock Price Prediction: FUD Sentiment Piles Up As Tariffs Bite appeared first in UK on InvestingCube.