NVDA got hit hard by the huge sell-off today and because of the DeepSeek release. The Chinese GPT alternative claims to be better or at least as good as GPT using way less and way older NVDA GPUs. If true, this could create a lot of stress on the CapEx of big US tech companies because the managers will ask their employees why they needed to buy all of those expensive GPUs if they are not necessary at all. That would lead to shrinking sales at NVDA. So far, so bad. But, we should not forget that misinformation is always a thing when talking about Chinese companies and claims. I also don't think that the result of such a claim would be that tech companies lower their CapEx and start doing less. Instead they will use this to understand how DeepSeek works and how they can be better than their Chinese counterpart using way more powerful GPUs. So, this huge sell-off could trigger a bounce from this confluence support. We perfectly hit the upward trend and a support level at $118. So, be brave and test the water.
Target Zones
- $131
- $140
Support Zones
- $118
Trade active
I would say that worked out perfectly. First target is as good as reached and I'd recommend taking some profit and move the SL to a safe zone.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.