During the trading session on September 11, technology giant Nvidia (NASDAQ: NVDA ) once again proved its status as a barometer of stock market sentiment.
Buoyed by an optimistic outlook from CEO Jensen Huang, the company’s shares maintained their short-term bullish momentum, leading the tech sector’s overall gains.
Nvidia shares surged after Huang noted that demand for the company’s chips has been phenomenal. “It’s all sold out,” the executive said at the Goldman Sachs (NYSE: GS) technology conference on Sept. 11, noting that AI customers are relying on the company’s infrastructure.
The market took Huang’s comments as a positive outlook for NVIDIA, suggesting that the company will likely continue to dominate the semiconductor sector going forward. As a result, NVIDIA’s shares soared, closing the trading session up 6% and giving it a market cap of $116, extending its impressive 2024 gains to 142% year-to-date.
Nerves rise among NVIDIA customers
Despite the positive news, Hwang acknowledged tensions with customers as Nvidia struggles to keep up with surging demand.
“Our parts, technology, infrastructure and software offerings are very emotional because they directly affect our bottom line and they affect our competitiveness. So I think there are more emotional customers today, and that’s natural. And if we could meet everyone’s needs, the emotions would go away. But it’s very emotional and very stressful,” he said.
NVDA Stock Price Prediction
Based on Huang’s sentiments about customer tension, Finnvold turned to OpenAI’s platform ChatGPT-4o to determine how stocks would trade going forward.
ChatGPT-4o said supply concerns could impact investor sentiment towards NVDA, leading to worsening price volatility. Additionally, the OpenAI tool suggested that shares could rise if chipmakers assure customers they will meet supply demands. Persistent problems could lead to further declines.
In terms of specific price fluctuations, the AI model predicted that if Hwang’s confession is received negatively, NVDA could adjust between $100 and $105 within the next two months, while if the issue is resolved, the stock price could rise to $130 to $140 in the next three months.
NVDA Stock Technical Outlook
Additionally, based on Nvidia’s short-term momentum, an anonymous stock market analyst named Market Maestro predicted in a Sept. 11 X post that a “cup and handle” pattern on the weekly chart is pointing NVDA towards a bullish long-term outlook. This pattern indicates that the current uptrend is likely to continue.
However, he warned that short-term obstacles, such as resistance at the $150 level, could thwart Nvidia’s rise. The expert also pointed out that the 78.6% Fib retracement around the $129 level could also act as a potential price barrier.
Nvidia Basics
Notably, Nvidia investors are hopeful that the stock may stabilize at its current valuation. In particular, in recent weeks, NVDA has experienced significant volatility and price fluctuations, which has led to the company’s shares being viewed as trading like a penny stock.
Meanwhile, the semiconductor maker remains supported by a major base, and demand for its AI chips remains strong, especially as its customer base continues to expand, with reports that Saudi Arabia may be on the way.
In this regard, the US government is reportedly considering allowing Nvidia to export chips to Saudi Arabia to help train and run AI models in the country. If the deal goes through, Nvidia’s revenue could soar, reaching $30.04 billion in the second quarter of 2024, up 122% year-over-year.
Buy stocks now with eToro, the trusted and advanced investment platform
Disclaimer: The content of this site is not investment advice. Investing is speculative and your capital is at risk when investing.
