Nvidia Stock Is Facing Selling Pressure Today: Why Some Investors Are Taking Profits

NVIDIA Corporation (NASDAQ:NVDA) shares are trading lower on Tuesday alongside other semiconductor stocks as escalating U.S.-China trade tensions create macro uncertainty, weighing on the broader market.

What Happened: U.S. stocks declined on Tuesday as Beijing ramped up its trade dispute with Washington, according to Bloomberg.

The S&P 500 dropped as much as 1% in early trading Tuesday, marking its third consecutive session with a move of at least 1% in either direction — the first such streak since April. The Nasdaq experienced an even sharper downturn as tech investors digested the recent re-escalation of trade tensions between the U.S. and China.

China reportedly imposed sanctions on five US divisions of South Korean shipping company Hanwha Ocean Co. and warned of further retaliatory actions against the industry. The move represents the latest volley in an ongoing series of retaliatory measures between the two countries as both seek leverage heading into anticipated trade negotiations.

According to Reuters, China also began collecting additional port fees on U.S.-linked vessels on Tuesday, though Chinese-built ships are exempted. The U.S. plans to implement additional port fees for Chinese ships in response. Beijing criticized Washington for seeking talks while simultaneously making threats.

Beijing has implemented stricter export controls on rare earths alongside other actions, while Washington has broadened restrictions on China’s chip access and threatened the nation with additional 100% tariffs. The rising trade uncertainty is weighing on chip stocks on Tuesday, with Nvidia leading the declines.

NVDA Analysis: Despite Tuesday’s pullback, Nvidia remains a dominant player in the semiconductor space, boasting a market capitalization of $4.46 trillion, significantly larger than its closest competitors, per Benzinga Pro.

From a technical perspective, the current price is situated above the 50-day moving average of $179.44, which serves as a key support level. Should the stock continue to decline, this moving average could provide a cushion against further losses. The 200-day moving average, currently at $144.69, is well below the current price, indicating a strong long-term bullish trend.

Resistance is identified just below the 52-week high, suggesting that a breakout above this level could lead to renewed buying interest and potentially push the stock toward new highs. The relative strength index (RSI) at 57.63 indicates neutral momentum, suggesting that while the stock is not overbought, it may require a catalyst to break through overhead resistance.

NVDA Price Action: Nvidia shares are declining by 3.18% to $182.28 on Tuesday at the time of publication, per Benzinga Pro. The stock is sitting about 6% below its 52-week high and is still 27.2% above its 200-day moving average.

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