Shares of AI chipmaker Nvidia (NVDA) are set to attract considerable attention in the coming days, particularly with the imminent presentation by CEO Jensen Huang at the Consumer Electronics Show (CES) in Las Vegas on Monday. Analysts and investors alike will be keen to gain insights into the company's future, especially regarding the sales projections for its Blackwell chips and the upcoming release of Rubin, Blackwell's successor, which is anticipated for 2026.
Nvidia, which has recently witnessed exceptional growth, finished 2024 with a staggering 170% increase in share value following a remarkable 240% surge in 2023. This growth has been attributed to a burgeoning demand for its AI chips, as major technology firms—including Microsoft, Meta, and Alphabet's Google—ramped up their datacentre and cloud computing capabilities to accommodate AI innovations.
As Nvidia's stock approaches the start of the new quarter, investors are particularly focused on the technical aspects of its share performance, especially after it reached a record high in late November and has since exhibited a pattern of trading within a descending channel. Analysis reveals that the stock price has interacted with both the upper and lower trendlines of this channel multiple times in recent weeks.
Key price levels have been delineated for Nvidia's shares, with analysts identifying critical support at approximately $130. This level is supported by a trendline bridging significant price movements from August to December. Should the stock close decisively below this point, it may break down past the descending channel's lower trendline, revisiting support around $115, which is situated near the rising 200-day moving average. This level could attract buying interest, given its historical significance as a price point from earlier in the past year.
Conversely, should Nvidia's shares find upward momentum, the initial resistance is anticipated around the $140 mark. This region coincides with the upper trendline of the descending channel and aligns with the stock’s heights recorded in June 2024. A breach above this resistance could propel the shares to approximately $150, where profit-taking may occur for investors who purchased during the recent price retracement.
As Nvidia prepares for Huang's updates at CES, Wall Street analysts have flagged the company as a "top pick" for 2025, underscoring strong demand for its Blackwell platform and suggesting a trajectory for continued expansion. With the company at the forefront of AI technology and automation, its market movements and strategic decisions will warrant close observation in the coming weeks.
Source: Noah Wire Services