Nvidia (NASDAQ: NVDA) shares have fallen significantly in recent weeks, but there remains a fair amount of optimism that the chipmaker may recover soon.
Analysts like CyclesFan support this view, believing Nvidia could see a rise in stock price after breaking through key resistance. However, the company’s shares are down 28% from their June highs, raising questions about its near-term trajectory.
The analyst wrote in an Aug. 4 X post that Nvidia’s stock price experienced a notable decline, bottoming out at $101.52 on Friday and marking the peak of its earnings gap since May.
This drop could signal a multi-week low, suggesting that a pullback on earnings is very likely.However, experts say that NVDA would need to break above the key resistance level of $120.16 for this potential pullback to be confirmed.
Mixed Feelings About Nvidia Stock
Overall, the recent drop in the stock price has caused mixed feelings among investors and analysts. Some are hoping for a rebound ahead of Nvidia’s earnings report and see this as a buying opportunity. If NVDA can break above the resistance at $120.16, it would mark the start of a sustained upswing that could lead to new highs.
At the same time, recent market news supports Nvidia’s cautiously optimistic outlook. For example, major bank Goldman Sachs (NYSE: GS) highlighted that Nvidia is expected to reveal key insights in its upcoming second-quarter earnings report, which could boost investor confidence.
This includes showing how end customers are using Nvidia’s artificial intelligence (AI) chips to generate significant benefits, which could alleviate concerns about the high cost and long-term viability of AI investments. Goldman Sachs remains bullish, reiterating a “buy” rating with a target price of $135.
Meanwhile, other analysts are also more positive. MarketBeat’s consensus rating for Nvidia is Moderate Buy, with an average price target of $131.59, suggesting a 22.67% upside from current levels. Additionally, Morgan Stanley analysts raised their price target to $144, citing strong demand for Nvidia’s AI chips.
NVDA High Volatility
Despite the bullish outlook, NVIDIA faces an uphill task shaking off recent volatility that has led the company’s stock to be considered trading like a penny stock or meme stock. Notably, between July 31 and August 1, NVDA’s market cap fluctuated by $600 billion.
As of market close on August 2, Nvidia shares were down nearly 2%, closing at $107.
Currently, the company’s stock price continues to fall as weak economic indicators have eroded investor confidence in the stock market.
Disclaimer: The content of this site is not investment advice. Investing is speculative and your capital is at risk when investing.
