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Nvidia Corp (NVDA) is set up for a meaningful pullback in the coming year after having more than tripled in 2023, as per a technical analysis from UBS.

Nvidia stock could tank up to 30%

Analysts at the investment bank even recommend shorting the semiconductor behemoth which they’re convinced will see a “20% to 30% correction” in the first six months of 2024.

The Q4 NDX rally is a wave 5 of a larger degree and should complete the 2023 bull market in technology.

Last month, the Nasdaq-listed firm warned its sales could take a hit in the current quarter due to restrictions the United States has imposed on export of AI chips to China.  

Wall Street currently has a consensus “buy” rating on shares of Nvidia Corp.

Nvidia has benefitted from the AI mania

Nvidia has rallied this year on the back of immense focus on artificial intelligence – a market that Statista anticipates will be worth about $2.0 trillion by the end of this decade versus $200 billion roughly at writing.

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But the AI-driven concentration in the Magnificent Seven, as per UBS chart analysts, suggests we are now closer to the end of the cycle.

Tactically, hyped mega cap tech names such as Nvidia are minimum medium-term toppish, which implies a big reversal very early in 2024.

In November, Jensen Huang – the Chief Executive of Nvidia Corp said U.S. chipmakers will remain dependent on China at least to some extent for another decade or two as Invezz reported here.

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