- NVDA shares are trading below $130 for the first time in two months.
- Verizon and Nvidia present a 5G private network solution for AI.
- Nvidia stock also misses the 100-day moving average for the first time since October 2.
- Nvidia server chips are overheating, possibly due to a power storage component from the supplier.
The actions of Nvidia (NVDA) They were trading 2% to 3% lower on Tuesday morning, falling below $130 for the first time since October 15, more than two months ago. If stocks end the day lower, this will be the fourth straight session of losses.
The pullback is notable as Nvidia has announced a new partnership with Verizon while quantum computing stocks are rising noticeably. Quantum Computing (QUBT) was trading 42% higher due to a new contract with the US government’s main space agency, NASA.
He Dow Jones Industrial Average (DJIA) fell 0.6% on Tuesday, falling for the ninth consecutive session. The Dow Jones Index has fallen below the 50-day SMA for the first time since November 5. The DJIA lists Nvidia as its top semiconductor stock after it replaced Intel (INTC) at the beginning of November.
Nvidia News: A partnership with Verizon for 5G MEC
Nvidia and Verizon announced their partnership Tuesday on a new enterprise AI platform for 5G customers. The platform allows companies to build and run AI applications with Mobile Edge Compute (MEC).
“Verizon’s 5G Private Network with Enterprise AI Solution brings together Verizon’s secure, reliable, low-latency 5G network along with Private MEC, with Nvidia’s enterprise AI software platform and NIM microservices to deliver powerful real-time services for business customers,” the Verizon statement said.
Verizon says the platform will begin rolling out in early 2025.
“Enterprises around the world are racing to integrate AI solutions that bring new value to their employees, partners and customers, and that can also help them operate with extreme efficiency,” said Ronnie Vasishta, senior vice president of telecommunications at Nvidia. “The integration of Nvidia’s complete AI platform into Verizon’s new solution for running AI workloads on private 5G networks is a big step forward in helping businesses of all sizes achieve their business goals faster with AI.”
Nvidia server chips overheating
The negativity surrounding Nvidia may be due to concerns that its next-generation AI server chips are overheating at a higher rate than many customers expected.
On Monday, TF International Securities analyst Ming-Chi Kuo said that Alpha and Omega Semiconductor (AOSL) supplies a power storage component called DrMOS 5×5 that is included in Nvidia’s GB300 and B300 server systems.
The DrMOS 5×5 is a driver MOSFET (or metal oxide semiconductor field effect transistor) that regulates the conductivity of electrical current.
The inside of an Nvidia server rack (Source: Nvidia)
“The chip itself may not be the only cause of the thermal problem, but it could also be due to insufficient optimization in other designs, such as system thermal management,” Kuo wrote on his blog.
This news probably reflects poorly on Alpha and Omega in the first place, but other Nvidia customers have been complaining in recent weeks about overheating in Nvidia’s new AI GPU, the Blackwell series of products.
Nvidia Stock Forecast
Nvidia has lost its position above the 100-day SMA for the first time since October 2, which is significant. Although the stock rose in the lead-up to the Nov. 20 results, the $149 level has been acting as resistance and pushing the semiconductor stock into consolidation mode.
A complete breakout and close below the 100-day SMA could signal that Nvidia was attempting a full pullback into the green ascending support range. Right now, this support range extends from $108 to $118.
This region is significant as it coincides with the $115 level, which acted as resistance and support from July to October of this year. Furthermore, the 200-day SMA stands at $115.75 on Tuesday.
Nvidia stock would need to break above the 50-day SMA near $140 to subvert this thesis and regain its uptrend status.
Nvidia Stock Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
