Yesterday, Nvidia’s (NVDA) share price climbed above the psychological threshold of $200 for the first time, pushing the company’s market capitalisation close to $5 trillion.
Several bullish factors are driving Nvidia’s share price higher:
→ Massive order backlog: The company reported pre-orders for its AI processors totalling an astonishing $500 billion.
→ Strategic partnership with the US government: CEO Jensen Huang announced plans to build seven AI supercomputers for the US Department of Energy.
→ Expansion into telecoms: Nvidia has invested $1 billion in Nokia, acquiring a 2.9% stake in the Finnish company to jointly develop AI-RAN and 6G technologies.
Back on 23 September, our analysis of the NVDA chart identified:
→ an upward channel outlining the stock’s price movements this autumn;
→ a breakout from a Bullish Flag pattern (shown in red);
→ a projection that strong fundamentals, the rapid advance of AI technology, and expectations of a Fed rate cut could enable bulls to overcome the $183 resistance level and target the psychological $200 mark.
That projection has materialised since:
→ the Bullish Flag breakout level has acted as support (marked with a bold blue line);
→ NVDA price swings have provided anchor points to refine the current channel.
Note the bullish gaps (highlighted by arrows) that indicate a demand imbalance. The rapidly strengthening upward momentum could drive NVDA’s share price towards the upper boundary of the channel, particularly as several major events approach today:
→ the Federal Reserve’s interest rate decision and subsequent press conference;
→ quarterly earnings releases from Microsoft (MSFT), Alphabet (GOOGL), and Meta Platforms (META), all of which are expected to reaffirm their commitment to AI development.
