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\n Share:<\/span><\/p>\n \u00a0<\/p>\n Nvidia (NVDA)<\/strong> stock has broken through the neckline of its head-and-shoulders technical pattern on the daily chart, meaning that investors should expect a major 18% decline to near $328.<\/p>\n The pattern appears more likely to ensue now that NVDA stock is being pressured following a Wall Street Journal report that the Biden administration\u2019s export controls could curb more than $5 billion worth of Nvidia chips sales to China.<\/p>\n The Wall Street reported on Tuesday that President Joe Biden\u2019s administration told Nvidia officials last week that the previously announced export restrictions on state-of-the-art chips used for AI workloads \u2013 including Nvidia\u2019s A100 and H100 GPUs used in generative AI \u2013 were immediately in effect.<\/p>\n The Journal spoke with company executives close to the matter who said Nvidia had planned to ship next year\u2019s batch of orders to Chinese customers in mid-November, in order to front run the new rules, but now could lose out on more than $5 billion in 2024 sales.<\/p>\n Nvidia\u2019s stock gave up more than 2% on the news this Tuesday and has finally lost its trillion-dollar market cap. Nvidia reached the $1 trillion mark earlier this year after its revenue guidance exploded higher on a flurry of orders relating to the generative AI industry. Nvidia is widely thought to offer the highest value chips for generative AI workloads.<\/p>\n Traders are still keeping their eyes on Advanced Micro Devices (AMD)<\/strong> earnings that arrive after Tuesday\u2019s market close. Wall Street consensus expects AMD to post earnings of $0.68 per adjusted share on $5.69 billion in sales.<\/p>\n The daily chart below offers up a textbook head-and-shoulders pattern. The \u201chead\u201d came on August 24 at an all-time high of $502.66. The pinnacle of each \u201cshoulder\u201d gave up in mid-July and mid-October in the area between $476 and $481.<\/p>\n The neckline of the chart pattern starts at the August 14 bottom at $403.11 and rises through the September 21 bottom at $409.80. This means that NVDA stock broke through the neckline on Thursday, October 26, just above $415.<\/p>\n Head-and-shoulders patterns are bearish signals, and the price target comes from the difference between the top of the head ($502.66) and the neckline break (~$415.50). This conjures up an $87 downside movement that is expected to curtail near $328.<\/p>\n Nvidia reached resistance in the vicinity of $328 back in November 2021, although that rally did momentarily climb above $346. Another more recent point of historical resistance is the $318.28 high from May 18, earlier this year.<\/p>\n\n
Nvidia stock news: AI chip curbs immediate, says Biden administration<\/h2>\n
Nvidia stock forecast: Head-and-shoulders chart pattern calls for $328 target<\/h2>\n