NVIDIA Corp. (NVIDIA (NVDA)) shares are down more than 1% in Monday's premarket session as investors trimmed exposure to high-growth technology stocks. Nasdaq futures fell 1.12%, while S&P 500 futures lost 0.39%, weighing on semiconductor names.
Investors turned more cautious ahead of the opening bell as equity futures weakened. NVIDIA is also trading near an important technical area. That has left short-term traders divided between buying recent weakness and taking profits after the stock's strong rally.
Ives Calls NVIDIA Key To AI Demand
Meanwhile, tech strategist Dan Ives told CNBC on Monday that investors have rotated toward memory stocks as the "shiny new toy," leaving NVIDIA and some hyperscalers under pressure despite their central role in AI.
He said NVIDIA remains the company powering the AI revolution, led by CEO Jensen Huang.
Ives said memory-chip demand remains strong, but questioned where the memory trade would be without NVIDIA and the hyperscalers driving AI infrastructure spending.
He said the upcoming second-quarter tech earnings season will be crucial for showing AI monetization, adding that demand still sharply exceeds supply.
Technical Analysis
NVIDIA traded at $208.25 in premarket action. The stock remained 2.9% above its 20-day simple moving average of $201.95 but slipped 0.6% below its 50-day simple moving average of $209.20. That suggests near-term momentum remains mixed.
The longer-term trend is still constructive. NVIDIA is trading 5.1% above its 100-day simple moving average of $197.71 and 8.4% above its 200-day simple moving average of $191.67.
The 20-day moving average remains below the 50-day moving average, a bearish crossover that can signal choppy trading in the short term. However, the 50-day moving average remains above the 200-day moving average, indicating the broader uptrend is still intact.
Momentum indicators are more encouraging. The moving average convergence divergence (MACD) remains above its signal line, while the histogram is positive. That suggests downside momentum is easing.
Key technical levels to watch include resistance near $214 and support around $199.50. Holding above the $200 area could help preserve the longer-term uptrend. A break below that level may lead to additional selling pressure.
NVIDIA reached a 52-week high of $236.54 in May. The stock later formed a swing low in June before slipping below a support level in July, making the current trading range especially important.
Earnings And Analyst Outlook
The next major catalyst is NVIDIA's estimated earnings release on Aug. 26, 2026.
Wall Street expects earnings of $2.07 per share, up from $1.04 a year earlier. Revenue is projected to reach $91.70 billion, compared with $46.74 billion in the prior-year period. The stock trades at about 32.3 times earnings.
Analysts maintain a consensus Buy rating with an average price forecast of $323.83. Recent research includes:
- China Renaissance initiated coverage with a Buy rating and a $319 price forecast on June 5.
- Needham maintained its Buy rating and $270 price forecast on June 2.
- DA Davidson maintained its Buy rating and $300 price forecast on June 1.
MarketDash Edge Rankings
According to MarketDash Edge, NVIDIA scores strongly on momentum, quality and growth, while its value score remains weak because of its premium valuation.
The momentum score is 74.81, quality is 98.13 and growth is 98.62. The value score stands at 6.92.
ETF Exposure
NVIDIA is among the largest holdings in several exchange-traded funds, including:
- Global X NASDAQ 100 Covered Call ETF (QYLD): 9.66% weighting
- Sapient Quality Select ETF (SQS): 9.95% weighting
- REX AI Equity Premium Income ETF (AIPI): 9.71% weighting
Because of NVIDIA's large weightings, significant ETF inflows or outflows can influence demand for the stock.
Price Action
NVDA Stock Price Activity: Nvidia shares were down 1.22% at $208.38 during premarket trading on Monday.
