Nvidia (NASDAQ:NVDA) shares are showing signs of technical fatigue after a massive multi-quarter rally, even as the company's fundamentals remain among the strongest in the semiconductor and AI industry. The latest chart action signals weakening momentum in the near term, while long-term investors continue to anchor their expectations to Nvidia's unmatched leadership in AI computing.

NVDA recently closed near $180, slipping below its 50-day moving average around $187. The breakdown marks a short-term shift in sentiment:

The RSI (14) at ~44 indicates weakening momentum:

A break below $175 would likely intensify selling, while a reclaim of the 50-day moving average would shift the tone back to bullish.

While short-term technicals have weakened, Nvidia's fundamentals remain exceptionally strong relative to peers in the semiconductor sector.

Nvidia's data centre segment -- powered by its H100 and GH200 GPUs -- continues to be the company's largest and fastest-growing revenue driver. Demand for AI infrastructure remains robust due to:

Recent earnings showed triple-digit year-on-year revenue growth, with data centre revenue now representing the majority of total sales.

Gross margins continue to hover near historical highs thanks to:

Operating leverage remains significant given Nvidia's fabless model and dominance in high-margin AI silicon.

Management commentary remains optimistic:

Nvidia trades at a premium to the semiconductor sector on metrics such as forward P/E and price-to-sales. However:

This combination supports the stock's long-term investment case, even if near-term volatility persists.

Nvidia's chart is signalling fatigue, but its fundamentals continue to justify long-term optimism. Near-term technical pressure may provide opportunities for patient investors looking to accumulate on dips within major support zones.