In the trading session of September 11, Nvidia, a technology behemoth (NASDAQ: NVDA), once again showcased its influence as a barometer of stock market sentiment. The stock maintained its bullish momentum, driving gains in the tech sector, inspired by a positive outlook from CEO Jensen Huang.
Huang’s mention of the remarkable chip demand during the Goldman Sachs Technology Conference on September 11 provided a significant boost to Nvidia’s stock. With statements like “everything is sold out,” the company’s infrastructure is pivotal for AI customers. This positive sentiment led to Nvidia shares surging by 6%, closing the trading session at $116, continuing its impressive 2024 rally with a 142% year-to-date growth.
Despite the upbeat news, Huang acknowledged growing client tensions due to Nvidia’s struggles in meeting the escalating demand. This emotional situation around delivery impacts clients directly, affecting their revenues and competitiveness, leading to intensified interactions.
Predicting future stock moves based on Huang’s insights, Finbold consulted OpenAI’s ChatGPT-4o platform. The AI tool suggested that supply issues might affect investor sentiment, potentially causing price fluctuations if not addressed promptly. The equity could either correct to $100-$105 or rally to $130-$140 in the next few months, contingent on the resolution of supply concerns.
Addressing the technical outlook, Market Maestro, an anonymous stock market analyst, foresees a bullish long-term trajectory for Nvidia, supported by the “Cup and Handle” pattern on the weekly chart. However, short-term hurdles such as resistance at $150 and the 78.6% Fibonacci retracement level at $129 could pose challenges.
Amidst recent volatility and comparisons to penny stocks, Nvidia’s fundamentals remain solid, with high demand for its AI chips. Additionally, reports suggest a potential expansion into Saudi Arabia backed by the U.S. government, opening avenues for Nvidia to export advanced chips for AI models, potentially boosting its revenue further.
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