Nvidia flags further warning signs

Nvidia is trading down 2.3% ahead of the open, trading at $123.67.

That comes after a reversal lower from an all-time high on Thursday and a further decline on Friday despite a flat day for stocks overall. Where is it headed?

If we take the last leg of the move, a minimum target would be $116, which is the 38.2% retracement. I suspect that’s the best-case scenario and I wonder what happens if the move in Nvidia spreads to broader tech and the market in general.

AI has been a great trade but the rollout of ChatGPT 4o is stalled. In an interview last week, OpenAI Chief Technology Officer Mira Murati said it would a year-and-a-half before GPT-5, which could mean 2026. Now that could be sandbagging but I think the 4o rollout is showing capacity bottlenecks and — perhaps — a fresh push towards caution. That’s the kind of thing that will kick off caution.

This article was written by Adam Button at www.forexlive.com.