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NVIDIA Corp. (NASDAQ:NVDA) stock rose nearly 2% in Monday's premarket trading as technology stocks gained ground. Nasdaq futures climbed 0.92%, while S&P 500 futures advanced 0.54%.
The gains came as investors returned to large-cap technology stocks despite concerns about the sustainability of artificial intelligence spending.
Steve Weiss, founder and managing partner of Short Hills Capital Partners, said he sold most of his NVIDIA holdings amid concerns that AI infrastructure spending may be approaching a peak.
Weiss told CNBC on Friday that major technology companies continue to report strong growth, but questioned whether hyperscalers can maintain their current pace of AI investment.
He warned of significant over-ordering of memory chips, semiconductors and data-center capacity, drawing comparisons with previous technology investment cycles.
Weiss said AI investment is far from over but expects capital-spending growth to slow as companies assess returns on their investments.
NVIDIA trades 6.1% below its 20-day simple moving average (SMA) of $221.46 and 6.2% below its 50-day SMA of $221.75, signaling near-term weakness.
The stock also sits 3.1% below its 100-day SMA of $214.52 but remains 1.7% above its 200-day SMA of $204.38, suggesting its longer-term trend remains intact.
The moving average convergence divergence (MACD) indicator remains below its signal line, pointing to weakening momentum.
Key resistance stands near $235, while support is around $190. A sustained move above $221 could signal renewed buying interest.
NVIDIA is scheduled to report earnings Nov. 17. Analysts expect earnings of $2.48 per share on revenue of $109.17 billion, compared with $1.30 per share and $57.01 billion a year earlier.
The stock carries a consensus Buy rating, with an average analyst price forecast of $342.08 across 50 analysts.
NVIDIA has significant exposure in several exchange-traded funds, including the Sapient Quality Select ETF (NASDAQ:SQS) at 9.82%, Applied Finance Valuation Large Cap ETF (NYSE:VSLU) at 9.85% and First Trust Innovation Leaders ETF (NYSE:ILDR) at 9.96%.
NVIDIA shares gained 1.64% to $207.99 in Monday's premarket trading, according to market data.
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