Pearl
Bitway
NEAR Protocol
Sui
Pudgy Penguins
Starknet
Pons
Nvidia stock rebounded slightly on Sept. 15 after five consecutive sessions of losses triggered by growing debate over artificial intelligence safety.
NVDA rose about 0.6% after closing the previous session at $210.96. The stock remains roughly 9% below its Sept. 4 high of $234.76 and continues to trade below its 50-day moving average.
The pullback comes as some of the biggest names in artificial intelligence call for slowing the development of advanced models. However, Nvidia CEO Jensen Huang and President Donald Trump have rejected the idea that AI innovation and safety require a broad development slowdown.
Nvidia Stock Hit by AI Safety Fears
The biggest story in the financial world is about the artificial intelligence industry and whether it poses substantial risks to people. These fears have been rising in the past few months, but they accelerated last week after an Anthropic employee warned that the sector risked ending the human race.
The biggest leaders in the AI industry responded by calling for a slowdown in AI model rollout. Dario Amodei, the head of Anthropic, warned that all firms should consider doing that. OpenAI’s Sam Altman, SpaceX’s Elon Musk, and the leaders of companies like DeepMind and Microsoft also supported these calls.
China, another top country in the AI industry, also warned about the rising risks of the AI industry. As a result, investors fear that a deliberate slowdown will affect companies in the industry.
If this happens, Nvidia would be the most affected because it has been the biggest beneficiary of the industry. It has also made investments worth billions in companies in the industry. Some of the biggest companies in its portfolio are names like CoreWeave, Nebius, IREN, Lumentum, Intel, OpenAI, and Anthropic. All these names would be affected if the industry faces a major slowdown.
On the positive side, some analysts believe that the AI industry has more room to run. For one, President Donald Trump has downplayed the risks associated with the AI industry. Also, top companies in the industry are still investing billions of dollars. For example, Anthropic inked a $13.7 billion deal with RUM Group this week. It recently inked a separate $45 billion deal with Nscale.
Nvidia is Facing Major Competition
Meanwhile, Nvidia stock is falling as more companies enter the AI inference industry. For example, Samsung Electronics invested in Euclyd, a Dutch startup building AI inference chips. It raised $230 million this week. In August, Etched, another company, doubled its valuation to $21 billion.
In addition to these startups, Nvidia is now competing with its customers, including companies like Microsoft, Google, and OpenAI. OpenAI recently unveiled its chip, which it says outperforms Nvidia’s Blackwell on some metrics.
On the positive side, Nvidia has invested in its brand and relationships. For example, it is backing OpenAI’s Ohio data center, which will use its chips. It has also invested in other top companies like CoreWeave and IREN, meaning that they will mostly use its chips.
The company estimates that its revenue growth will accelerate in the coming years. The average estimate is that its revenue will grow by a whopping 77% next year.
NVDA Stock Price Technical Analysis
Nvidia stock price chart | Source: TradingView
Technicals explain why the stock has slipped in the past few days. Before this retreat, the stock formed a rising wedge pattern, which is a common bearish reversal pattern. It plunged as the two lines neared their confluence.
The stock has dived below the 50-day Exponential Moving Average (EMA). It also slipped below the lower side of the wedge pattern, while the Relative Strength Index (RSI) has moved downwards. Therefore, the stock will likely remain under pressure, potentially to $200 and then bounce back to its all-time high.
This article is for informational purposes only and does not constitute financial or investment advice. Investing in stocks involves risk, and past performance does not guarantee future results. Readers should conduct their own research before making investment decisions.
