NVIDIA shares drop due to market uncertainty

NVIDIA stock has recently been in a slight decline amid an overall correction in the tech sector. The downward momentum was primarily driven by Donald Trump’s announcement that he might cancel his meeting with Xi Jinping, leading to a sell-off in the industry.

Despite the temporary decline in NVIDIA shares, the company’s long-term prospects remain positive due to an active development of AI computing. The recent announcement of the first US-made Blackwell chips at TSMC's Phoenix facility has reinforced investor confidence in NVIDIA's ability to adapt to an ever-changing geopolitical landscape. However, the current state of global trade uncertainty keeps pressuring the firm’s stock.

The market was particularly bothered by Jensen Huang's sale of 225,000 shares worth more than $41 million. Such top management’s behavior can be interpreted as a signal of reaching a local high. Nevertheless, this fact should be considered alongside Bank of America analysts' upward revision of their projections for the semiconductor market to $1 trillion by 2027. This indicates that the sector remains fundamentally strong, albeit there might be an excessive trader reaction in the medium term.

Concurrently, the technical setup is now pointing to a consolidation phase and high levels of uncertainty. The RSI is in neutral territory at 44, signaling a slight decline in NVIDIA shares. The Chaikin Oscillator remains in the negative zone, suggesting that seller dominance, while ongoing, is slowing. Combined with reduced trading volumes, this paints a picture of a market lacking clear direction. The price is likely to keep declining to support at $177. At this level, a rebound toward $188 could take place. If conditions are favorable enough, NVIDIA stock might hit $192.

Take into account the following trading strategy:

Given the aforementioned factors, there is a good opportunity to buy NVIDIA stock during its correction toward $177. Place Take profit 1 at $188, Take profit 2 at $192, and Stop loss at $173.

The forecast remains valid between October 22 and October 29, 2025.