NVIDIA's share price decline is driven by lack of confidence in tech sector

NVIDIA (NVDA), the largest graphics processor manufacturer, saw its share price drop 3.43% during yesterday's session, even as it unveiled new technologies at the GTC 2025 conference in San Jose.

The company introduced Groot N1, a new model for open-source humanoid robots based on NVIDIA’s Project Groot. The new model is equipped with two systems; the first one is associated with slow thinking for analysing and planning, while the second one is associated with fast thinking for performing such complex tasks as multi-step manipulation. CEO Jensen Huang called the project a key step in the development of physical artificial intelligence (AI), predicting a shortfall of 50 million jobs by the end of the decade. This makes robotics a promising industry. NVIDIA also provides frameworks and blueprints for modelling. Groot N1's success and increasing demand for graphics processing units (GPUs) could be drivers of NVIDIA's growth in the future.

However, the stock has lost 16.54% since the beginning of the year, reducing its market value by more than $800 billion. This is due to geopolitical tensions and trade uncertainty caused by US President Donald Trump's policies.  The stock market decline and questionable profitability of AI investments are putting pressure on technology shares.

In terms of technical analysis, NVDA quotes are forming a downtrend on the daily chart (D1). Having worked off the price gap caused by the presentation of China's DeepSeek, the price rushed down again. Fundamental events have formed the limits of the corrective downtrend. The price may hit the descending resistance level within this channel. However, the volumes of the Bears Power indicator (using standard values) have moved into the negative zone, indicating stronger selling pressure.

Signal:

The short-term outlook for NVDA suggests selling. 

The target is at the level of 94.30.

Part of the profit should be taken near the level of 105.35.

A stop-loss could be placed at the level of 132.00.

The bearish trend is short-term, so a trading volume should not exceed 2% of your balance.