General Motors Co (NYSE:GM) is nearing a critical technical level that could trouble investors.

Despite a promising partnership with Nvidia Corp (NASDAQ:NVDA) to integrate AI into vehicle development, GM stock is approaching a Death Cross -- a bearish signal that suggests potential downward momentum.

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GM Stock Chart Flashes Caution

GM stock is teetering on the edge. The stock was trading at $49.16 at the time of writing, slipping below key moving averages:

• GM stock’s 50-day simple moving average sits at $49.16, signaling bearish pressure.
• The 200-day simple moving average at $49.07 is now dangerously close to crossing above the 50-day, forming a Death Cross--a classic indicator of prolonged downside risk.
• The Moving Average Convergence Divergence (MACD) indicator is negative 0.05, reinforcing the bearish outlook.
• However, GM's Relative Strength Index (RSI), at 53.79, suggests the stock is neither overbought nor oversold, meaning traders could still swing either way.

AI Optimism Vs. Technical Headwinds

GM's latest moves in artificial intelligence should not be overlooked. The automaker is leaning into Nvidia's cutting-edge AI technology for both factory automation and self-driving development, leveraging Omniverse for digital assembly simulations.

AI-powered automation is improving manufacturing efficiency, while Nvidia's DRIVE AGX chips will play a crucial role in GM's advanced driver-assistance systems like Super Cruise.

Related: How The Nvidia-GM Partnership Could Challenge Tesla, Boost Uber

Can AI breakthroughs outweigh technical warning signs? GM's expanding AI investments hint at long-term growth potential, but the looming Death Cross paints a different picture. With shares drifting below key moving averages and nearing this bearish signal, short-term traders may be eyeing the exits while long-term investors weigh whether GM's AI-driven innovations can outpace the technical downturn.

Investor Implications

For bullish investors, the approaching Death Cross may still signal an opportunity -- as a potential inflection point for GM's AI-driven ambitions. However, those mindful of technical signals may prefer to wait for a clearer trend to develop.

While GM is betting big on AI, the charts suggest investors should brace for potential volatility ahead.

Read Next:

• Nvidia CEO Jensen Huang Announces GM Partnership: ‘The Time For Autonomous Vehicles Has Arrived’

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