Nvidia slumps for five days as calls grow to slow AI model development

  • Nvidia faces investor scrutiny after AI leaders called for slower model development.
  • Nvidia shares fell from $234 to $218 after five consecutive declining sessions.
  • Analysts set a $324 consensus target, while Raymond James expects $515.

Nvidia shares will draw attention when markets open Monday after falling for five consecutive days to their lowest level since September 2. The pressure follows calls from Anthropic’s Dario Amodei, OpenAI’s Sam Altman and Elon Musk to slow the pace of artificial-intelligence model development over safety concerns. Nvidia has become a central company in the AI industry through its graphics processing units (GPUs), investments and exposure to OpenAI, where it has invested more than $30 billion and committed to provide a financial backstop for an Ohio data center. The company’s annual revenue is expected to exceed $411 billion this year and $677 billion next year. Its stock has declined from a monthly high of $234 to $218, with technical indicators offering mixed signals: it has formed a cup-and-handle pattern and remains above its 50-day and 100-day exponential moving averages, but has also developed a rising wedge and bearish divergence in the Percentage Price Oscillator. The shares could fall toward the psychological $200 level, while analysts’ consensus target is $324, or 48% above the current price. Raymond James analysts have set a $515 target, representing a 130% increase.

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Nvidia slumps for five days as calls grow to slow AI model development - CoinPost Terminal