In the midst of the September 11 trading session, Nvidia, a prominent technology giant, once again showcased its role as a key indicator of stock market sentiment. The stock maintained its bullish momentum, driving gains within the tech sector, propelled by optimistic remarks from the company’s CEO, Jensen Huang.
Huang’s acknowledgment of the soaring demand for Nvidia’s chips led to a substantial boost in the company’s stock. His statement at the Goldman Sachs Technology Conference highlighted the exceptional demand, with AI customers relying on Nvidia’s infrastructure, resulting in a positive market perception of the company’s future dominance in the semiconductor sector. Consequently, Nvidia shares soared by 6% by the end of the trading session, reaching a valuation of $116 and extending its remarkable 2024 rally to 142% year-to-date.
Despite the positive outlook, Huang also expressed concerns about escalating tensions with clients due to Nvidia’s challenges in meeting the increased demand. Emotions are running high among customers as the company grapples with delivery issues that directly impact their revenues and competitiveness.
Analyzing the potential future performance of Nvidia stock amidst these tensions, an AI model consulted by Finbold warned of supply-related uncertainties affecting investor sentiment, potentially leading to adverse price movements. The model suggested that the stock could correct to a range of $100 to $105 in the next two months or rally to $130-$140 if supply concerns are addressed.
On a technical analysis front, the stock is set for a bullish long-term trajectory as indicated by the “Cup and Handle” pattern on the weekly chart, despite short-term obstacles such as resistance levels and potential price barriers identified by market analysts.
While recent market dynamics have caused volatility in Nvidia’s stock, the company’s strong fundamentals, including high demand for its AI chips and a growing customer base, continue to support its position in the market. Moreover, potential export opportunities to Saudi Arabia might further boost Nvidia’s revenue, with the U.S. government considering facilitating chip exports for AI model training in the country.
It is important to note that investing in stocks carries risks, and individuals should exercise caution and not solely rely on speculative content for investment decisions.