Nvidia’s titles fall below $ 111 even though Wall Street recognizes its leadership about AMD

  • NVDA’s shares lose weight on Thursday morning.
  • Automotive tariffs imposed by Trump send the majority of car manufacturers down.
  • The trade balance deficit for February is greater than expected.
  • NVDA’s actions continue to quote in a bearish pattern of Death Cross.

NVIDIA (NVDA) actions another 2.5% fell on Thursday despite the fact that the Jefferies Investment Bank published a client note showing the increase in NVIDIA’s advantage in AI products over its competitor Advanced Micro Devices (AMD).

NVDA shares fell below the level of $ 111, helping the Dow Jones Industrial Average (Djia) to sink 0.2%. The S&P 500 lost a similar percentage, while Nasdaq fell about 0.4% in the first half hour on Thursday.

The US economic data has been largely surprising on Thursday, but the commercial balance of preliminary goods for February did not meet expectations, standing at -147.9 billion dollars instead of the consensus of -134.5 billion dollars.

Reading could have been affected by US companies trying to import greater stocks before Trump administration tariffs enter full validity. In the prelude to the day of liberation proposed by the White House on April 2, when the administration is expected to reveal more tariffs and restore some delayed tariffs, Trump announced tariffs for the automotive industry late on Wednesday that will apply to all foreign countries that send vehicles and pieces finished to the US.

Automotive tariffs, which begin by 2.5% and increase up to 25% over time, have already damaged the prices of the actions of many global car manufacturers on Thursday. The actions of General Motors (GM) more than 8% fell early on Thursday, while the shares of Tesla (Tsla) They advanced 4%. In addition, Trump used social networks to threaten the worst tariffs to Canada and the European Union (EU).

News about Nvidia’s actions

Jefferies analyst Blayne Curtis said in a note on Thursday that the research conducted internally suggests that the performance gap between Nvidia and AMD’s chips is even greater than previous statements.

“Our proprietary comparative evaluation report suggests that NVDA H200 performance performance through a variety of open source models is substantially higher than the AMD MI300X, despite the largest amount of TFLOPS and memory bandwidth announced of the MI300X,” Curtis wrote in a note to customers.

In addition, Curtis suggests that this gap will only grow when the Blackwell and Blackwell Ultra Nvidia GPUs reach broader use. The company’s H200 or Hopper GPUS line was launched in 2023.

“A valid objection would be that the AMD solution is not so well optimized for the models we tried, but we consider that this is precisely the point,” Curtis explained. “These results underline the importance of NVDA’s mature software battery to manage the efficiency of GPUs, and this gap will be expanded.”

At the NVIDIA GTC conference earlier this month, CEO Jensen Huang said Nvidia sold 1.3 million hopper gpus to the four main Hyperscalers – Amazon, Microsoft, Alphabet and Oracle – in 2024. Meanwhile, Huang said that his company had already sold 3.6 million gpus Blackwell to these same companies, despite the fact that the product only The past fall began to be sent.

Even worse for AMD, Nvidia has a plan to expand its advantage in specific AI chips. The next generation of AI GPUS, the Blackwell Ultra, is scheduled to be launched in the second half of this year. Then, the Rubin line will arrive at the end of 2026, followed by the Rubin Ultra at the end of 2027, and the Feynman line scheduled for some time in 2028.

Jefferies reduced his qualification on AMD’s shares to buy, cutting his price objective from $ 135 to $ 120.

Forecast of Nvidia’s actions

The main approach of the Diar Nvidia graphic remains its recent start to a Death Cross pattern. A Death Cross is when the simple mobile (SMA) average (SMA) falls below the 200 -day SMA, what happened for Nvidia on March 20, and typically foreshadows that a prolonged setback is coming.

Secondly, another bearish event has been that NVDA’s actions are quoting below the rank of the ascending trend line (colored light green), which supports the long Nvidia rally that began in October 2023 and will last until the end of February 2025.

Despite Jefferies’s suggestion that Nvidia’s technological advantage is currently insurmountable, the graph tells us that this rally has come to an end. It seems that all this talk about tariffs weighs on NVIDIA due to the concerns that this commercial policy causes a slower global economic growth or even a recession.

In the short term, Nvidia needs to recover the threshold of $ 115 to free yourself from the short -term negative technical aspects. However, since the minimum on Thursday fell below the minimum of the range of March 3, a new testing of the support level of 105 $ seems more likely.

Daily NVDA Shares Graphics

Source: Fx Street

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