Nvidia stock pulls back for second day straight

Nvidia (NVDA) shares are trading lower for the second consecutive day, despite recent headlines that have fueled stock gains, such as the release of its new Blackwell product line-up. Yahoo Finance's Josh Lipton and Jared Blikre assess whether the company's performance could merely comprise a consolidation phase as the stock reaches new highs.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

Editor's note: This article was written by Angel Smith

Video transcript

JOSH LIPTON: The news here, green across the screen, but not for Nvidia. That stock is slipping today, ending in the red. No real news or headlines that I see here. Of course, listen, this name has had just a historic run. It's already up about 80% this year. It's about 240% over the past 12 months. So you cannot blame some folks for thinking about maybe booking profit here at these levels. Of course, know Jared, what the skeptics will argue. You're baking in a lot of good news at these levels with Nvidia.

They'll say Semis are, their boom and bust, Jared. What if the big tech giants, they'll buy as many of those fancy AI trading chips looking ahead competition with AMD and Intel. Though we should note, if you look at the financial analysts, Jared, they are actually paid to make recommendations to decide, tell you what to do with this stock. It's hard to find a name they love more on the street than Jensen Huang's Nvidia.

JARED BLIKRE: Sell side is selling Nvidia. Let's take a look at the Wi-Fi interactive. My opinions are formed by prices, and this is just a hugely bullish chart. Although I will say, we haven't had a new intraday record high in some time. This is just consolidation. This is what happens when a stock advances. You can see there is another minor one here that plummet over what, two, three days. That was a shock, but the very next day rocketed above.

And this has just been that stairstep pattern that you see when stocks are going higher. And here, here's 2023. So this is a two-year chart. You can see for about half of last year, the stock was in a sideways trading pattern, and then it exploded to the upside. So that's my two cents on Nvidia technicals.

JOSH LIPTON: Two cents, worth more than that, Jared.