AI Memory Rout Wipes 9% Off Nvidia Stock: Chart Says More Pain Ahead
Nvidia's stock fell 9% due to Google's new AI memory compression technology and OpenAI's data center spending cuts, facing a critical technical test.Summary
Nvidia (NVDA) stock experienced a 9% decline following Google's announcement of TurboQuant, a memory compression algorithm that reduces AI model memory requirements. This triggered a sell-off in AI memory manufacturers like Micron and SanDisk. Reports of OpenAI scaling back data center spending further compounded the pressure, as their previous commitment to DRAM supply was a key factor in the memory shortage thesis. Technically, the stock is nearing a breakdown of a head-and-shoulders pattern, which could lead to an additional 11% correction. However, options traders are showing bullish sentiment, potentially setting up a short squeeze if the stock bounces. Key price levels to watch include $165, $174, $183, and $188, with a failure to reclaim $165 confirming the bearish pattern and potentially leading to a price of $146.
(Source：BeInCrypto)