Fund manager warns Nvidia will end with $50 price target

Stock Performance and Technical Analysis - Nvidia's stock is currently trading near the upper limit of its 52-week range, but some experts believe the company's exceptional gains may be nearing an inflection point [1] - Over the past month, Nvidia's share price has fluctuated between $126.86 and $146.54, indicating market indecision, with visible resistance levels just above the current price [2] - Key support zone is identified between $131.60 and $137.05, while resistance zones are noted between $139.78 and $141.19, and $147.64 and $148.89 [2][3] - Recent technical indicators suggest caution, with historical precedents showing that a dip below the 50-day moving average could lead to a breach of the 200-day moving average, signaling a weakening bullish trend [4] - The Chaikin Money Flow (CMF) indicator has hovered close to zero, indicating potential fading investor confidence, though it has not yet dipped decisively into negative territory [5][6] - Despite falling below its 50-day moving average, Nvidia's stock has yet to break below its 200-day moving average, with a critical threshold for such a breach being a price drop below $120 [7][8] Market Sentiment and Expert Opinions - Veteran fund manager Doug Kass predicts Nvidia's stock price could slide dramatically to the $50–$75 range, attributing this to "double ordering" practices in the semiconductor industry [10][11] - Double ordering, where customers inflate orders during high demand, may have significantly inflated Nvidia's reported revenue and profits, potentially leading to a stark recalibration as orders dry up [11] - Nvidia's dominance in the AI and semiconductor space has been driven by high-demand cycles, but reliance on these cycles and potential over-ordering practices could expose the company to sharper corrections if sentiment shifts [12] Potential Risks and Bearish Predictions - A drop to $54.72, representing a 60% crash from current levels, aligns with some of the more bearish predictions circulating among industry veterans [8] - The possibility of a significant downturn has market watchers speculating about the severity of a potential decline, with technical indicators and expert opinions pointing to heightened risks [8][10][11]