Nvidia’s AI Factory Ambition Meets a Macro Speed Bump as Shares Test €174.40 Support

Nvidia shares fell 5.42% on macro and sector headwinds, but product momentum remains strong with Vera CPU production and HBM4 certification.

For Nvidia, the gulf between operational milestones and market sentiment has rarely been wider. Last week, CEO Jensen Huang stood on stage at Computex in Taipei and unveiled a multi-generational product roadmap stretching toward the end of the decade — complete with full production of the new Vera datacenter CPU and a push into consumer AI PCs. Yet by Friday’s close, the stock had shed 5.42 per cent, landing at €178.08 and deepening its retreat from the May record.

The trigger was a one-two punch from the broader economy. A much stronger-than-expected US jobs report — 172,000 new positions in May, nearly double the consensus estimate — reignited fears that the Federal Reserve may be forced to raise rates again. That was followed by disappointing results from Broadcom, which dragged down the entire Philadelphia Semiconductor Index by more than ten per cent. Nvidia’s decline, while severe, was relatively contained compared to the sector-wide rout.

From the all-time high of €202.50 reached in mid-May, the stock has now given back roughly twelve per cent. The initial euphoria following Nvidia’s blockbuster quarterly results has given way to a sober consolidation, and chart watchers are zeroing in on a critical level. The 50-day moving average sits at €174.40, and Nvidia closed Friday just 2.11 per cent above that line. A sustained break below this mark would open the door to a deeper correction toward the 100-day average, with the 200-day moving average at €161.46 acting as the ultimate long-term floor. The Relative Strength Index, at 45.3, points to neutral-to-bearish momentum, though it has not yet dipped into oversold territory.

None of this volatility, however, seems to have dampened the product engine. Huang confirmed during his Computex keynote that the Vera CPU — purpose-built for AI infrastructure at OpenAI, Anthropic, and SpaceX — has entered full production. Nvidia is no longer merely selling graphics chips; it is delivering complete “AI Factories.” The company also took aim at established processor makers with the RTX Spark Superchip, designed to power the next wave of Windows-based AI PCs, with “Vera Rubin Spark” and “Rosa Feynman Spark” already on the two-year cadence.

Equally important for the supply chain, Huang revealed that all three major memory manufacturers — Samsung, SK Hynix, and Micron — have passed certification for the new HBM4 memory. These chips are essential for Nvidia’s forthcoming Vera Rubin accelerator platform, ensuring a broad and robust foundation for the next growth phase. The CEO is currently spending four days in South Korea deepening partnerships with SK Group and Hyundai on artificial intelligence and robotics.

The fundamental backdrop remains formidable. Hyperscalers including Microsoft, Amazon, and Alphabet are expected to spend roughly $700 billion on infrastructure in 2026, much of it earmarked for Nvidia’s Blackwell and upcoming Rubin architectures. That supports a market capitalisation of approximately €4.468 trillion. Nvidia’s annual general meeting is set for June 24, where routine agenda items will be overshadowed by investor focus on the Rubin ramp and integration of the new consumer chips.

Wall Street analysts are largely unmoved by the technical setback. The consensus of 38 analysts keeps a Buy rating and a price target of €258.67 — representing a 45 per cent upside from Friday’s close. The gap between current caution and medium-term optimism remains vast. For now, the 50-day moving average at €174.40 serves as the tactical battle line. A weekly close below that level would confirm a deeper pullback, while a successful hold could see an initial bounce toward €185. Over the past twelve months, the stock has still gained 45.47 per cent, a reminder that the longer-term trend remains intact — even if the short-term mood has soured.