Is Nvidia heading for a massive technical sell-off? Expert analyst's insights

Core Viewpoint - Nvidia's stock has experienced a significant downturn recently, with an 8.97% decline in the last five trading days, following an 800% increase since the AI boom began in late 2022, resulting in a current stock price of $113.74 [1][3]. Group 1: Stock Performance - Nvidia's stock has been trading within a wide range of $106.30 to $136.15 over the past month, currently near the lower end of this range [2]. - A market expert warns of a potential further decline of 16.9%, which could bring the stock price down to $94.53, erasing gains made since early May [3]. - The current stock volume dynamics indicate high selling pressure and low buying volume, suggesting that a collapse may have already begun [3]. Group 2: Factors Behind the Downturn - Concerns about possible further sanctions against China, a key buyer of advanced chips, have been linked to Nvidia's stock market troubles [4]. - The semiconductor and broader technology sectors have faced a sharp downturn in July, with Nvidia's new microchip model failing to halt the decline [4]. - Significant insider selling, including the CEO's sales worth over $250 million in July, has exacerbated the situation [4]. Group 3: Market Dynamics and Valuation Concerns - There are fears that the AI boom has created a bubble that could lead to a potential 98% crash in Nvidia's stock [5]. - Nvidia's price-to-earnings (P/E) ratio stands at 66.16, indicating a fragile and unsustainable market valuation [5]. - Despite warnings, some analysts believe Nvidia's stock may be undergoing a correction rather than a crash, citing confidence in the AI boom's longevity [5].