Nvidia’s Strong Quarter Meets Broadcom Contagion as Key Support Level Comes Into Focus

Nvidia falls 5.4% to €178, approaching critical 50-day moving average after Broadcom's AI revenue fails to lift sector; Goldman maintains $285 target, implying 60% upside.

The chip sector’s mood turned sour on Thursday after Broadcom posted record AI revenue but watched its stock crater 15%. That selling pressure bled into Friday, dragging Nvidia down 5.42% to close at roughly €178. The move cut Nvidia’s weekly performance to a 1.85% loss and brought the stock perilously close to its 50-day moving average — a level that will determine whether this is a healthy pullback or the start of a deeper correction.

All this happened even as Nvidia’s own fundamental story strengthened. The company reported first?fiscal?quarter revenue of $81.6 billion, up 85% year over year, and guided for $91 billion in the current quarter — comfortably ahead of the consensus near $87 billion. Goldman Sachs reaffirmed a $285 price target, implying roughly 60% upside from Friday’s close.

A Week of Strategic Moves

While Broadcom absorbed the market’s punishment for failing to raise its full?year AI guidance, Nvidia quietly fortified its ecosystem. On June 4, it acquired predictive?AI software startup Kumo AI for more than $400 million — a company previously valued at around $250 million that specialises in fraud detection, demand forecasting, and supply?chain optimisation. The deal joins a string of more than 100 startup acquisitions Nvidia has used to build out its full?stack AI platform.

The next day, CEO Jensen Huang confirmed that Samsung, SK Hynix and Micron had all passed certification for HBM4 memory, the high?bandwidth chip critical to the upcoming Vera Rubin platform. That next?generation architecture is expected to deliver ten times the throughput for AI agents compared to the Grace Blackwell generation, with customer shipments beginning in the third quarter of 2026. Huang also used Computex to stress that supply, while still tight, is secure, and at the GTC Taipei event he unveiled RTX Spark with Microsoft, designed to bring personal AI agents to Windows PCs.

Technical Anchor at €174.40

Friday’s sell?off left Nvidia trading only 2.09% above its 50?day simple moving average of €174.40 — the first line of defence for the short?term trend. A clean hold at that level would keep the pullback contained; a decisive break would shift attention to the 100?day line at €165.70, and below that the 200?day line at €161.46. The latter still sits 10.27% below the current price, so the long?term uptrend remains intact for now.

The relative strength index at 45.2 signals neither oversold conditions nor strong momentum, while the 30?day annualised volatility of 43.58% confirms that large swings are part of the current setup. The 52?week high of €202.50 reached in May now stands roughly 14% overhead, a level that looks distant given the recent weakness.

A Broader Sector Reckoning

The Broadcom episode has laid bare a shift in investor expectations. The company’s AI chip revenue doubled to $10.8 billion in its second fiscal quarter and overall sales climbed 48% to $22.19 billion, yet the stock was hammered because growth was no longer accelerating. Analysts had projected $17.2 billion in AI chip sales for Broadcom’s current quarter; the company guided to $16 billion. The message: markets now demand accelerating growth, not just growth.

Against this backdrop, Nvidia’s own guidance — $91 billion versus a $87 billion consensus — stands out as a relative strength. The analyst consensus price target of €256.04 (roughly $285) implies 44% upside. Yet the chart shows a stock that has moved sideways for the past month, and the 50?day moving average at €174.40 is the immediate test. If that level holds, the bull case built on Vera Rubin, expanding AI adoption, and a pristine earnings trajectory remains credible. If it breaks, the correction could extend toward the €165 area — still far above the 52?week low of €122.42, but a reminder that even the sector’s dominant player is not immune to the market’s changing mood.