Nvidia’s Stock Trading Pattern Nearly Identical To 2018, Before 60% Price Drop

Summary:

• Nvidia Corporation faces significant operating risks from cyclical semiconductor demand, potential Trump tariffs, and future competition, particularly from Alphabet’s new Willow quantum chip with AI implications.
• Fading technical momentum characteristics mirror the topping pattern of late 2018, suggesting the possibility of an oversized price drop in the near future.
• Earnings growth rates and profit margins should backpedal in 2025, as a function of Nvidia’s massive size and potential macroeconomic disruptions.
• Insider selling has surged, while Nvidia’s valuation remains precarious, warranting a Strong Sell rating on NVDA shares for the next 12 months.

My last Nvidia Corporation (NASDAQ:NVDA) article in July discussed the wickedly bearish movement in the Ease-of-Movement indicator to record lows. It was a signal of bullish investors pulling back orders, where limited sell

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