Nvidia Faces 'Chip Smuggling' Allegations: $2.5 Billion Shipment Reportedly Reached China

The news headline contains a serious allegation that Nvidia has made illegal chip shipments to China. Such geopolitical risks, especially during a period of sensitive US-China trade tensions, could create short-term pressure on the stock. Technical indicators point to a potential short-term correction, with the RSI approaching overbought territory (67.9) and a high 24-hour return (+8.97%). Although the MACD still signals bullish momentum, there is a possibility of weakening momentum. Therefore, a short-term downward move can be expected, but it is still too early for a strong decline.

The news involves chip smuggling allegations against Nvidia, which could create general unease in the technology sector. Although BABA stock has risen 5% in the last 24 hours, the RSI at 57 is in neutral territory and the MACD remains below the signal line. This technical weakness, combined with the negative news, could lead to selling pressure in the short term. However, the stock's position above the 50-day SMA may limit the decline. Therefore, a slight short-term drop is expected.