Nvidia Stock Slips Below 20-Day Moving Average as Jensen Huang Warns on China. What Comes Next?

Nvidia (NVDA) shares have slipped in recent sessions after the company’s chief executive, Jensen Huang, said China will “win the AI race” due to its regulatory agility and cheaper energy access.

The recent selloff has pushed NVDA stock below its 20-day moving average (MA), indicating bearish momentum ahead, at least in the near term.

Despite the aforementioned decline, however, Nvidia stock remains up a whopping 100% versus its year-to-date low in early April.

NVDA shares’ break below their 20-day MA signals a potential shift in short-term momentum from bullish to bearish.

The 20-day moving average is a widely watched technical indicator that reflects recent price trends. A drop below it suggests weakening buying pressure, often making traders sell their positions en masse.

For high-momentum stocks like Nvidia, which have rallied sharply, this breach can prompt profit-taking and algorithmic selling.

Additionally, it raises caution among institutional investors as well, especially if accompanied by high volume or negative news, such as Jensen Huang’s recent remarks.

Huang’s comments have weighed on Nvidia shares this month mostly because traders interpreted them as a sign of intensifying competition, especially amid tightening U.S. export restrictions.

Sure, the semiconductor giant has secured approval to sell its H20 chips to Chinese customers, but the country’s regulatory authority has reportedly discouraged domestic companies from buying them.

These mixed signals raise questions about NVDA’s long-term exposure to Beijing.

Note that Nvidia stock has its next key support around the $184 level, coinciding with its 50-day MA. A break below that price could accelerate bearish momentum heading into 2026.

Beyond technicals, however, the fundamental case for owning Nvidia shares for the longer term remains intact, which is why Wall Street firms continue to recommend buying it at current levels.

According to Barchart, the consensus rating on NVDA stock sits at “Strong Buy” with the mean target of about $235 indicating potential upside of more than 25% from here.