NVIDIA tries to outshine its competitors

NVIDIA shares have attempted to recover from a recent slump triggered by news that its largest customers are actively developing their own AI processors. Investors were particularly concerned about the release of Amazon Web Services’ new chip, which is positioned as a more cost-effective alternative to NVIDIA's solutions.

Despite the intensifying competition, the company’s fundamental factors remain strong. The firm is keeping up with the times, partnering with AWS to integrate its NVLink Fusion technology into future chip models. This strategy helps NVIDIA to maintain a leading position in the sector, making its ecosystem stand out among rivals. Furthermore, its $2 billion strategic investment in Synopsys provides access to cutting-edge industrial design and engineering tools. The long-term outlook remains positive due to growing demand for AI technologies and the corresponding surge in energy needs for data centers.

However, NVIDIA’s competitors are in hot pursuit. Google and Microsoft, alongside Amazon, are developing their own chips. Additionally, global shortages of high-bandwidth memory (HBM) are capping the industry's overall growth, though NVIDIA claims to have a secure supply chain. Round-tripping is another investor concern. Such transactions may distort true end demand for the firm’s products. All these factors act as strong headwinds for the stock, even amid a general improvement in market risk appetite.

The technical setup reflects fundamental uncertainty. The price is now sitting at $180.97, below the adaptive moving average ($189.25). This points to a prevailing downtrend and medium-term weakness. However, the picture is not that clear, as the Chaikin Oscillator remains in positive territory, suggesting modest capital inflows. Meanwhile, the RSI Indicator is near 40, which is neither overbought nor oversold. NVIDIA’s stock appears to be in a state of equilibrium, consolidating as it awaits new catalysts. Current price levels could represent an area of accumulation for patient investors.

Consider the following trading strategy:

Buy NVIDIA shares in the $174.50–$183.00 range. Take profit 1: $189.50. Take profit 2: $195.00. Stop loss: $168.00.

The forecast is valid from December 3 to December 10, 2025.