- Summary:
- Nvidia share price has gained more than 16 percent in the last month and is about to hit its highest level since share split. But what next?
Nvidia share price extended its gains on Thursday as the stock rose by 2.9 percent in the pre-market session on upbeat market sentiment around the AI industry. The stock was at $139.80 at the time of writing, signaling a potential move to its highest level post-split. Nvidia’s latest gains have are partly attributable to a strong earnings report by Taiwan Semiconductor Manufacturing Company (TSMC) whose Q3 profits rose by 54 percent year-over-year and comfortably beat analysts’ estimates.
Nvidia (NASDAQ: NVDA) has risen by 16 percent in the last month, and is up by 175 percent year-to-date, underlining the bullish momentum around the stock.The company recently revealed that orders for its Blackwell GPUs were fully booked for the next 12 months, signaling a strong outlook for 2025.
The underlying risk for Nvidia
Semiconductor stocks dipped on Tuesday after Bloomberg, citing people familiar with the matter, reported that the US Government was considering curbing AI chip exports to some countries. That could potentially constrict markets for leading manufacturers like Nvidia and AMD, Broadcom, which could ultimately hurt their earnings.
On the technical front, Nvidia’s share price gains this year are not only attributed to its record earnings but also its forward guidance. That means many investors have already locked in the price based on the glamorous outlook for the future. Therefore, that could bring downward pressure on the stock price if no new markets open for the company. In addition, Dutch semiconductor company, ASLM Holding’s weak outlook for 2025 could provide hints on the potential problems lying ahead for Nvidia.
Nvidia share price prediction
Nvidia share price pivots at 138.55, and the bulls will be in control if they keep the action above that level. In that case, the first resistance could come at 140.30. However, if the bullishness strengthens, the stock could move higher and meet second resistance at 141.47.
On the other hand, the sellers will likely take control below 138.55. With the downward momentum in play, initial support could come at 137.20. However, if the momentum strengthens, it could breach that level and test 135.60.
