Nvidia stock extended its rally on Monday, boosted by upbeat sentiment surrounding the earnings release. Nvidia (NASDAQ: NVDA) traded at $143.34 in pre-market session, moving up 1.2% on daily chart. The company is building strong sentiment about its growth prospects after CEO Jensen Huang described demand for Blackwell chips as “insane.”
Nvidia’s strong upside is fueled by market power
Nvidia’s order book is full for the next 12 months. That means demand for the company’s chips will outstrip supply in the coming months, suggesting another round of better-than-expected profits. Meanwhile, Bank of America (BofA) analyst Vivek Arya recently raised his forecast for Nvidia’s stock price to $190 from $165.
This suggests that the stock has a potential growth potential of 32% from its current price. However, near-term, immediate volatility is likely to be significantly impacted by earnings calls from Nvidia’s major customers scheduled for this week.
Blackwell’s major buyers, Microsoft, Google, Meta and Amazon, will report earnings this week. This could give investors valuable insight into AI-related spending and revenue, which could help guide Nvidia’s earnings outlook.
Things are better for Nvidia, as its market power in high-end GPU chips is currently not under threat. However, competitors like AMD and Broadcom could close the gap in 2025, as NVIDIA’s tight order book could give the company more room to explore other options.
Nvidia stock price chart
Nvidia stock momentum calls for further upside above the pivot mark of 142.60. Therefore, it could move higher to test the initial resistance at 143.55. However, if the purchaser extends control, NVDA may be able to test 144.10 beyond that level.
Alternatively, a break below 142.60 would signal bearish control, with first support likely coming at 141.95. Greater control by sellers could result in a break below that level, invalidating the upside story and allowing losses to widen until it tests 141.20.
