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Trends & Analysis
News

USD gains amid Fed rate cut speculations

News

Is the silver squeeze back?

News

Li Auto’s stock hits a speedbump on Q1 results

News

Gold closes week higher on rate cut speculations

News

Week Ahead Preview: 20th of May

News

Walmart’s stock hits record high on Q1 results

Asset Watch

Will NVIDIA remain the AI king?

Tuesday, August 1, 2023

It’s been a momentum trader’s paradise in 2023, with dips being bought and new highs materialising alongside smooth uptrends. And as NVIDIA leads the charge, everyone’s favourite chipmaker is the best-performing member of the NASDAQ 100 year-to-date (YTD).
Mizuho analyst Vijay Rakesh has a “conservative” price target of $530 and wrote on Jul. 24, “With demand for generative AI accelerating, we see significant opportunities for hardware suppliers powering the higher compute needs for large-language models, particularly AI powerhouse NVDA.”
But with earnings released on Aug. 23, NVIDIA has to deliver to remain in investors’ good graces. In the meantime, though, while overbought conditions are present on longer timeframes, short-term momentum is robust.

The blue line below tracks NVIDIA’s 200-hour moving average. Aside from April’s false breakdown, the level has held for several months and should be on your radar if you plan to ride the wave.

A prudent approach would be to hold a position if the stock remains above its 200-hour MA or enter a new position if the stock bounces off the support level. Alternatively, a stop-loss could be placed 2% to 4% below the 200-hour MA to remain invested if another false breakdown occurs, while also avoiding a flush if sentiment shifts.

So, is NVIDIA still a safe bet, or is all the good news already priced in?


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