Key Takeaways:
- On-chain analyst Ali Martinez set a $170 price target for Nvidia stock
- The call follows a confirmed bearish head-and-shoulders pattern breakout
- NVDA has fallen 14.19% in June and trails the S&P 500 year-to-date
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Nvidia stock target cut to $170 as head-and-shoulders pattern breaks
On-chain analyst Ali Martinez cut Nvidia Corp.'s price target to $170, confirming a bearish head-and-shoulders breakout.
"NVDA shares have cleared the neckline of a head-and-shoulders pattern, indicating their descent is likely to continue," Martinez said in a June 29 post on X.
The pattern formed over three months: a left shoulder during April's rally, a head in late May and a right shoulder in mid-June when NVDA briefly climbed above $210. The neckline break points to a potential 11.7% decline from the June 26 close of $192.53. NVDA traded at $194.26 in extended trading Sunday, up 0.9%.
The call comes as Nvidia underperforms the broader market. NVDA is up 1.95% year-to-date, trailing the S&P 500's 7.23% gain. The stock has fallen 14.19% in June alone as debate grows over AI return on investment.
The head-and-shoulders pattern marks a trend reversal from bullish to bearish. The left shoulder formed during an April rally that ended with a drop in early May. The head took shape later that month, followed by the right shoulder in mid-June. The confirmation came after volume increased on the breakdown, reinforcing the bearish view.
Nvidia's struggles contrast with its dominant performance during the AI boom that began with ChatGPT's release. While most analysts remain bullish on the broader AI sector — with particular focus on memory and central processing units — investors have grown more cautious, contributing to the stock's June volatility. NVDA shares peaked above $232 in early June before the selloff accelerated, according to price data. The decline has outpaced peers in the Philadelphia Semiconductor Index, which fell about 8% over the same period.
The $170 target implies a return to levels last seen in early 2025, erasing much of Nvidia's AI-era gains. The next test for the stock will be its Q2 earnings report, due in August, where data center revenue trends and guidance will determine whether the technical sell signal aligns with fundamentals.
This article is for informational purposes only and does not constitute investment advice.
