NVIDIA Corp. (NVDA) stock rebounded in Wednesday's premarket trading as a rally in South Korean chip stocks and strong results from CoreWeave Inc. (CRWV) lifted sentiment.
The recovery followed a selloff tied to allegations involving NVIDIA CEO Jensen Huang and concerns over the company's leadership.
According to market data, South Korea's KOSPI chip rally supported the rebound. CoreWeave's strong third-quarter results and higher full-year revenue forecast also pointed to continued demand for artificial intelligence infrastructure.
Analyst Warns of NVIDIA Leadership Risk
Yorkville Ives' Dan Ives told CNBC that investors appear to see a 15% to 20% chance of Huang losing his CEO position. Ives warned that NVIDIA shares could fall another 20% to 30% if Huang leaves.
He also raised concerns about NVIDIA's succession planning. However, Ives suggested the pressure on the stock could ease if Huang remains CEO following the investigation.
NVIDIA Stock Faces Technical Pressure
NVIDIA remains under pressure after a sharp selloff. Investors are watching whether the stock can recover before its next earnings report.
NVDA shares have fallen 12.56% over the past 12 months. The stock also trades below key moving averages, signaling continued weakness.
At $175.39, NVIDIA traded about 15.1% below its 20-day simple moving average (SMA) of $206.18. It also stood 14.3% below its 200-day SMA of $204.54.
Meanwhile, the relative strength index (RSI) stood at 23.59. A reading below 30 suggests the stock is oversold and could see a short-term rebound.
However, the 20-day SMA remains below the 50-day SMA, signaling bearish momentum.
Traders are watching support at $170 and resistance at $188.50. NVIDIA's 52-week low stands at $164.27.
NVIDIA Earnings Could Trigger Next Big Move
NVIDIA is scheduled to report quarterly earnings Nov. 17.
Analysts expect earnings of $2.48 per share, compared with $1.30 a year earlier.
Revenue is projected to reach $109.17 billion, up from $57.01 billion in the year-ago period.
Meanwhile, analysts maintain a consensus Buy rating on NVIDIA, with an average price forecast of $336.15. Recent analyst actions include:
- Baird downgraded NVIDIA to Neutral and lowered its price forecast to $200 on Wednesday.
- Citigroup maintained its Buy rating but cut its price forecast to $285 on Tuesday.
- Wells Fargo maintained its Overweight rating and reduced its price forecast to $300 on Tuesday.
NVDA Price Action
NVDA Stock Price Activity: NVIDIA shares were trading up 3.68% at $175.10 during premarket trading on Wednesday, according to market data.
