Nvidia stock price is on a roll. The asset was up by 2.5 percent and traded at $138 at the time of writing to stay on course to register the third successive session of gains. The stock has been on a steep uptrend since the begining of October, and rose by more than 6 percent last week. If it repeats its exploits this week, the AI chipmaker could topple Apple from the peak of the world’s largest companie s by market capitalisation.
As of this writing, Nvidia’s market cap is at $3.39 trillion. The iPhone maker’s market cap stands at $3.5 trillion, but faces pressure as its iPhone 16 sales dissapoint. Nvidia (NASDAQ: NVDA) share price upbeat momentum is driven by a high demand for its Blackwell GPUs, whose orders are filled for the next 12 months.
It is highly likely that Nvidia share price will stay on the uptrend this week, as its leading supplier, Taiwan Semiconductor Manufacturing Company (TSMC) is set to release its quarterly earnings report on Thursday. A better-than-expected report will add support to the bullish view of the AI sector and help push Nvidia valuation past Apple.
In the long term, however, Nvidia’s current success could prove costly. Nvidia’s rivals, AMD unveiled the MI325X AI chips last week, and that could provide a pathway for enterprises locked out by the big tech companies from Blackwell’s orders. If Instinct MI325X proves to be a hit, it could fill the gap and potentially eat into Nvidia’s market dominance.
The momentum on Nvidia share price calls for further upside above 137.40. With the buyers in control, the first resistance could come at 139.40. If the upward momentum strengthens, NVDA could break above that mark to test 141.50.
On the downside, the sellers could take control if the stock breaks below 137.40. If that happens, initial support could come at 135.60. However, extended bearishness could break below that level to invalidate the upside narrative and test 133.80.
This post was last modified on Oct 14, 2024, 17:33 BST 17:33