• NVDA stock stuck to the scrips and lost another 3% on Friday.
• NVDA stock is down 34% so far in 2022.
• NVDA stock is set for earnings next month but peer AMD is out next week.

It's fair to say 2022 has not been a good one for investors in semi conductor stocks. After a surging year in 2021 investors would have been hoping the strong momentum was set to continue into 2022. With Wall Street largely backing up that thesis with a string of bullish price targets investors have been left holding some of the worst-performing stocks of the year so far. Added to the mix of course have been fresh headwinds in the shape of the Ukraine war as well as old problems around covid lockdown with factories in Shanghai once again feeling the pinch as covid struck the city hard.

NVDA stock news

Of course the main problem for the tech sector and one NVDA cannot avoid has been the speed with which bond markets have sold off and so pushed yields higher. Tech stocks are usually more sensitive to rising yields, even those with strong balance sheets and positive cash flows. A case of being guilty by association. This theme picked up speed last week and Fed officials stepped up the hawkish narrative ahead of their imposed blackout this week before May's interest rate decision. So at least that's one relief. Other problems will not be so easily solved with China in mounting states of distress over lockdown and factory closures, none of which will help NVDA or the semiconductor sector. NVDA again is guilty by association from the FaceBook and Netflix debacle. Netflix dropped a massive 36% after losing subscribers and now all the focus is on Facebook after something similar last time around. NVDA cannot avoid these tech spillover effects and the stock made a new low for the year on Friday breaking the psychological $200 level. Bank of America recently reiterates its ambitious $375 price target and said the sell-off may be overdone. However, it appears Mr. Market does not agree. Most Wall Street analysts fail to take a look at the broader market sentiment when issuing price targets and right now that is what is dominating the market.

NVDA stock forecast

Breaking $206 will likely set the tone for further losses on Monday and into the remainder of the week. However, this week is tech week earnings so these must be watched as that will drive investor sentiment to the tech sector for the next quarter. Apple, Google, Qualcomm, Microsoft, Facebook and Amazon are up this week on the earnings front so really this week is a make or break for the tech sector. The Fed hawks are in a blackout so some good earnings could help stem recent losses for the sector.

There was the possibility of the strong downtrend ending once NVDA stock set a fresh high on Mach 29. But this needed the lows at $206 to hold which has now broken. All that has meant the March 29 high was another lower high when compared to all-time highs and now breaking $206 has put in place a lower low. $206 now becomes resistance. $178.66 is the next support, the low from July and below a move to sub $140 cannot be ruled out as the point of control lies there. Volume is now light until we get toward $140. These levels are targeted so long as NVDA stock sits below $206. Breaking back above $206 puts us on watch for a move to the 200-day moving average at $244.

NVDA stock chart, daily