Investors continued to sell Nvidia shares, sending the chipmaker’s shares down 4% on Friday. The stock is on track to fall 14% over the weekend following reports of the antitrust investigation, as the company’s stock approaches $100 a share, a key technical threshold that analysts watch closely.
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Nvidia shares extended their post-earnings losses on Friday, with the chipmaker’s shares approaching a key technical level amid selling pressure across tech stocks during trading hours.
Nvidia shares fell more than 4.5% on Friday to trade around $102.15 per share, bringing the stock closer to the key psychological threshold of $100 per share and just below its 200-day moving average of $90.
Analysts told Business Insider this week that traders are keeping an eye on those levels as a sign that the semiconductor giant’s surge is fading. But Wall Street is generally bullish on the stock’s prospects, with analysts predicting an average target price of $153 per share, according to Nasdaq data.
Investors have been cautious about Nvidia shares since the company reported second-quarter results that beat profit estimates but fell short of meeting the highest expectations.
The company’s shares recovered slightly earlier this week but continued to fall sharply following a Bloomberg report that the Department of Justice was investigating the company for possible antitrust violations.
“While each case is different, it is also worth noting the numerous government lawsuits filed against other large U.S. technology companies over the past few years. Until more details become available, we see no particularly material impact to NVDA’s fundamental business opportunity,” Bank of America strategists said in a note, reaffirming their Buy rating on the stock.
Nvidia’s market capitalization was $2.53 trillion as of Friday, down about $500 million from its early June levels, and the stock is still up 111% from the start of the year but is on track to fall 14% by the end of the week.
Friday’s drop came amid a broader sell-off in technology stocks, with the Nasdaq Composite down 2.5% as of 2 p.m. ET, as investors fled high-growth stocks after a weaker-than-expected August jobs report sparked renewed concerns about an economic slowdown.
