Nvidia Stock Rallies 3% After Falling for Four Consecutive Trading Days

Nvidia shares rallied 3% in premarket trading Wednesday after falling for four consecutive trading days.

Nvidia shares fell for the fourth straight session on Tuesday, extending their slide into a technical correction as the stock is down 15% from last month's record high.

While analysts remain bullish on the company’s prospects heading into 2025, investors may be wanting further confirmation that the chipmaker can sell significant volumes of its new Blackwell chips after the reported discovery of overheating issues last month prompted concerns over production delays.1

Depsite its recent slump, the stock is still up about 160% since the start of the year, far outpacing the S&P 500's 27% return over the period, amid booming demand for the company’s AI silicon.

The stock fell 1.2% to close Tuesday's session at $130.39.

After setting a record high, the stock traded mostly sideways before falling below the 50-day moving average late last week. potentially setting the stage for further consolidation.

Investors should watch key support levels on Nvidia's chart around $115 and $102, while also monitoring important resistance levels near $140 and $150.