Jensen Huang is framing the recent selloff in semiconductor stocks as an opportunity rather than a warning. The Nvidia chief described the pullback as a “rabatt” for investors during a Seoul visit, arguing that artificial intelligence infrastructure is still in its infancy. The timing is notable: the shares have shed nearly 6% in the past seven days and trade roughly 10% below their May record of €202.50, closing Monday at €181.40 — a gain of just under 2% on the day.
The softer price action, however, masks a flurry of strategic moves. Over the weekend, Nvidia struck a multi-year partnership with SK Hynix to develop next-generation memory components for so-called AI factories. Separate agreements with LG Group and Doosan Group target robotics and physical AI applications. Meanwhile, British cloud provider Nebius announced a £1.7 billion investment in three new London data centres powered by Nvidia platforms, aiming for a combined 65 megawatts of capacity by 2027.
On the product front, Nvidia introduced the RTX Spark at Computex, a chip combining a 20-core Grace processor with a Blackwell GPU and up to 128GB of unified memory. The device is designed to run large AI models locally without cloud connectivity. Dell, HP, Lenovo and Asus plan to integrate it into high-performance workstations, positioning the chip as a direct rival to Apple’s MacBook Pro, which has long dominated the developer and creator segment.
Should investors sell immediately? Or is it worth buying Nvidia?
Technically, the stock is testing a critical level. After closing Friday at €178.08, the shares remain above their 50-day moving average of €174.40 — a roughly 2% cushion. Analysts see that zone as the line between a healthy correction within an intact uptrend and a more damaging break. Below that, the 100-day average at €165.70 and the 200-day average at €161.46 serve as secondary supports. The 14-day relative strength index sits at 45.3, suggesting cooling momentum but not a rout. The 30-day annualised volatility of 43.54% points to continued large daily swings.
The fundamental backdrop remains robust. Nvidia’s last reported quarterly revenue of $81.62 billion comfortably beat market expectations, and Huang emphasised on Computex that the company has sufficient CPU and GPU capacity to support growth, even as demand outstrips supply. Yet one major institutional investor is trimming exposure. Legal & General, the largest shareholder, reduced its position by 5.4% in the latest period, selling roughly 9.7 million shares. Still, Nvidia accounts for over 7% of the insurer’s portfolio, making it the single largest holding.
Consensus price targets tell a bullish long-term story, with a median of €258.67 — implying about 45% upside from current levels. That potential, however, remains conditional on the shares reclaiming their upward momentum. For now, the market is weighing Huang’s discount narrative against a technical picture that is neutral to constructive: the stock still posts a year-to-date gain of roughly 11%, and all three key moving averages lie below the current price. A sustained close above €174.40 would reaffirm the medium-term trend and reopen the path toward the May high of €202.50. A break below that threshold would shift attention to the €165 area.
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