Nvidia hot streak snapped as AI-fuelled rally hits a pause

Nvidia, a leading tech company known for its powerful computer chips, saw its impressive winning streak come to an end. For 10 consecutive days, Nvidia's stock prices had been climbing, which tied its all-time record. However, the streak was halted when the stock fell by 1. 6% on a Wednesday. During the streak, Nvidia's value on the stock market went up by nearly $220 billion. nnThe decline in Nvidia's stock was partly due to a technical indicator called the relative strength index (RSI), which suggested that the stock might be due for a drop because it had been bought too much. This happened right after Microsoft announced its own AI chip, the Maia 100, which could compete with Nvidia's products. Before this drop, Nvidia's stock had been rising because of a general upswing in tech stocks and the belief that the Federal Reserve wouldn't raise interest rates any higher. nnDespite the setback, Nvidia had recently updated its AI chips, showing its commitment to staying ahead in the AI field. However, not all investors are optimistic about Nvidia's future. Michael Burry's investment firm placed bets against a group of semiconductor stocks, including Nvidia. Additionally, billionaire investor Stanley Druckenmiller's firm reduced its stake in Nvidia. The company's upcoming earnings report on November 21 will provide further insights into its financial health and market position.