It’s now time to ‘short’ Nvidia stock: UBS chart analysts

Nvidia Corp (NASDAQ: NVDA) is set up for a meaningful pullback in the coming year after having more than tripled in 2023, as per a technical analysis from UBS.

Nvidia stock could tank up to 30%

Analysts at the investment bank even recommend shorting the semiconductor behemoth which they’re convinced will see a “20% to 30% correction” in the first six months of 2024.

Last month, the Nasdaq-listed firm warned its sales could take a hit in the current quarter due to restrictions the United States has imposed on export of AI chips to China.  

Wall Street currently has a consensus “buy” rating on shares of Nvidia Corp.

Nvidia has benefitted from the AI mania

Nvidia has rallied this year on the back of immense focus on artificial intelligence – a market that Statista anticipates will be worth about $2.0 trillion by the end of this decade versus $200 billion roughly at writing.

But the AI-driven concentration in the Magnificent Seven, as per UBS chart analysts, suggests we are now closer to the end of the cycle.

In November, Jensen Huang – the Chief Executive of Nvidia Corp said U.S. chipmakers will remain dependent on China at least to some extent for another decade or two as Invezz reported here.