NVIDIA Stock Analysis

AI giant NVIDIA's (NASDAQ: NVDA) stock is experiencing significant growth and may reach its June high of around $141 per share, as indicated by technical analyst Katie Stockton of Fairlead Strategies.

Triangle Breakout Confirmation

Stockton noted, "Heavyweight Nvidia (NVDA) confirmed a triangle breakout yesterday, supporting near-term follow-through toward its June high (~$141)." Despite weakening short-term momentum in the SPX and NDX, NVIDIA’s breakout could mitigate a major decline in the broader market indices, leading to a short-term neutral bias for U.S. equities according to Fairlead Tactics.

Recent Performance

NVIDIA's stock has gained for six consecutive sessions, with a minor increase of 0.12% today. Year-to-date, the stock has surged by over 170%.

Strong Demand for Blackwell

Analysts are bullish on NVIDIA’s new Blackwell product, which CEO Jensen Huang described as having "insane" demand. In a recent CNBC interview, Huang stated, "Blackwell is in full production, as planned, and demand for Blackwell is insane. Everyone wants the most, and everyone wants to be first."

TSMC's Positive Report

Taiwan Semiconductor Manufacturing (NYSE: TSM) reported that its September sales exceeded estimates due to strong AI chip demand. Their September 2024 revenue reached approximately NT$251.87 billion, a 0.4% increase from August 2024 and a 39.6% rise from September 2023, as TSM produces NVIDIA's AI chips.

Future Projections

In a recent update, analysts from Morgan Stanley indicated that Blackwell production revenue in the first quarter of 2025 could surpass the Hopper product. The Blackwell chips command a price premium, with B200 chips priced 60-70% higher than H200 chips, suggesting that Blackwell revenue is poised to exceed Hopper in the coming quarter.