Nvidia stock price seems to have broken its correction phase that occurred after suffering a rejection from the $476 level. The stock of the GPU manufacturer closed at $460.95 on Monday after rising $5.7 on the first trading day of the week.
On Monday, US stocks were surrounded by bullish sentiment ahead of key earnings reports that are to be released later this week. The Nasdaq 100 index gained about 134 points after suffering a 1.23% sell-off at the end of last week. The S&P 500 index also followed by showing a 1.1% gain on Monday.
Earlier this year, Nvidia agreed to supply around $5 billion worth of AI chips to China. However, the chip manufacturer might have problems fulfilling its commitment after an intervention by the US Government. Despite producing a less powerful AI chip specifically for China, the US government will still likely limit the number of chips that will be exported to the Chinese market.
Last week, TD Cowen analysts upgraded their price target for Nvidia stock price from $600 to $700 after holding a meeting with Nvidia’s top executives. The analysts expressed great confidence in the chipmaker’s stock and expected to see new highs soon.
They mentioned “the suite of superior technology, the long pedigree of innovation, and extensive growth-oriented investments” as the reasons behind strong and sustained growth.
The chart below shows NASDAQ: NVDA struggling to break above the $480 resistance level. We can also see the 50-day moving average acting as a dynamic support. The $480 level is a key resistance level because the price suffered a 15% correction after a rejection from this level.
The only way for the Nvidia stock price prediction to flip bullish will be to reclaim $480. If this happens, the stock is expected can be expected to set a new all-time high. However, in case of a break below the 50-day moving average, a retest of the $405 will be on the cards.
This post was last modified on %s = human-readable time difference 22:34