Macro Shock and Political Pressure Hand Nvidia Its Worst Day in Months as Key Support Looms

A bruising session for semiconductor stocks on Friday wiped an estimated $1.3 trillion from the sector’s market value, with Nvidia at the eye of the storm. The chipmaker’s shares plunged more than 5% to close at €178.08, their steepest single-day drop in recent memory, as a potent mix of macro headwinds and regulatory scrutiny unnerved investors.

The sell-off was ignited by unexpectedly strong US jobs data for May, which reignited fears that the Federal Reserve could lift interest rates again before year-end. That macro jolt was compounded by a lackluster quarterly outlook from Broadcom, pulling the entire artificial-intelligence supply chain lower. The PHLX Semiconductor Index suffered its worst day since March 2020, ending in double-digit territory.

Beyond the macro picture, Nvidia faces mounting political pressure. US Senator Elizabeth Warren has summoned chief executive Jensen Huang to appear before the Senate Banking Committee on June 11, focusing on US export controls and Nvidia’s China operations. The hearing follows reports that Chinese companies exploited a legal loophole through Asian subsidiaries to access advanced Blackwell chips until late May. Separately, director Mark A. Stevens sold 1 million Nvidia shares in early June, adding to the narrative of insider profit-taking.

Should investors sell immediately? Or is it worth buying Nvidia?

Technical analysts are now watching a crucial short-term floor. The 50-day moving average sits at €174.40, a level that has become the first line of defence for the stock. Friday’s close leaves the shares just 2.09% above that mark. A clean break below €174.40 would shift attention to the 100-day line at €165.70, and further down to the 200-day line at €161.46. The 52-week low of €122.42 remains a distant 45% away, so the long-term uptrend is not yet in jeopardy.

The relative strength index has cooled to 45.2 points, indicating neither oversold conditions nor strong momentum. Annualized 30-day volatility stands at 43.58%, reflecting the current environment of outsized swings. The stock ended the week down 1.85%, with the past 30 days essentially flat — hardly the stuff of a continuation rally.

Yet operational developments tell a sunnier story. Huang confirmed during a visit to Seoul that the new Vera Rubin AI platform has entered full mass production, with Samsung, SK Hynix and Micron receiving official certification for the essential HBM4 memory. Analysts estimate SK Hynix will supply 60-70% of the volume, Samsung 25-30%. Shipments of the NVL72 systems are on track for the third quarter. At the GTC Taipei event, Nvidia also unveiled RTX Spark in partnership with Microsoft for Windows PCs running personal AI agents, and reiterated that the Vera CPU for AI workloads is in the pipeline.

For the current quarter, management is targeting $91 billion in revenue, a figure that already assumes zero contribution from the Chinese data-center market. The analyst consensus price target of €256.04 implies roughly 44% upside from Friday’s close. But before the bulls can dream of new highs, Nvidia must first hold the €174.40 line. If it does, the correction may prove healthy. If it doesn’t, the next act shifts toward €165.

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