Nvidia stock price extended its hot streak on Monday, propelled by upbeat sentiment surrounding earnings releases. Nvidia (NASDAQ: NVDA) traded at $143.34 in the pre-market session, up by 1.2 percent on the daily chart. The company has built a strong sentiment around its growth outlook after CEO Jensen Huang described the demand for Blackwell chips as “insane”.
Nvidia’s order book is filled for the next twelve months. That means demand for its chips will outweigh supply in the coming months, signaling the likelihood of another series of forecast-beating earnings. Meanwhile, Vivek Arya, an analyst at Bank of America (BofA) has recently revised upwards their forecast for Nvidia stock price, from $165 to $190.
That signals a 32 percent potential growth head room from the current price for the stock. However, the near-term immediate volatility will likely feel a greater impact from the earnings calls from Nvidia’s leading customers, scheduled for this week.
Blackwell’s leading buyers, Microsoft, Google, Meta and Amazon will all release their earnings results this week. That could give investors useful insights on their AI-related expenditure and earnings, which could give guidance on Nvidia’s revenue outlook.
It gets better for Nvidia, as its market dominance in high-end GPU chips is currently not under threat. However, competitors like AMD and Broadcom could narrow that gap in 2025, as Nvidia’s tight order book could open up the space for enterprises to explore other alternatives.
The momentum on Nvidia stock price calls for further upside above the pivot mark at 142.60. That will likely see more gains to test the first resistance at 143.55. However, if the buyers extend their control, it could enable NVDA to break above that level and test 144.10.
Alternatively, moving below 142.60 will signal a bearish control, and the first support will likely come at 141.95. An extended control by the sellers will break below that level, invalidating the upside narrative and potentially extending losses to test 141.20.
This post was last modified on Oct 28, 2024, 10:53 GMT 10:53