Nvidia’s Stock Surges Past $140: What Investors Should Know

Overview: Nvidia Corporation NVDA shares traded above $140 for the first time in 20 days, igniting speculation that it may reach new highs if it crosses the $145 mark.

Current Status: On a shortened trading day, Nvidia’s share price moved past its 50-day moving average and reached $140.22, the highest level since December 6. Quant trader Peter DiCarlo suggests that a jump over $145 could pave the way to $170 within the first quarter. However, he cautions that if it fails and drops sharply, the price could retreat to $120 before another climb to $170 in the second quarter.

Chart analysis indicates that Nvidia must surpass the $141.87 price level to align with its $145 daily trendline, suggesting that momentous movement is necessary for further gains.

Expert Insights: Steven Strazza, director of research at All Star Charts, discussed the positive momentum surrounding Nvidia. In a post, he emphasized that the semiconductor sector is recovering and that Nvidia’s support level is strong. He noted, “Momentum not even close to oversold,” indicating healthy stock performance.

The stock’s strong performance is backed by solid technical analyses. Closing at $140.22, it surpassed both eight and 20-day moving averages ($133.85 and $137.17, respectively). Additionally, its current price is higher than the 50-day and 200-day moving averages of $139.76 and $116.91, indicating a robust uptrend. The relative strength index stands at 54.12, showing moderate strength without entering overbought territory.

Important Considerations: Recently, financial analyst Jim Cramer warned about a possible market correction for Nvidia, citing a lack of significant upward movement in its stock. He anticipates a sharp reversal could be on the horizon. Additionally, Nvidia is currently facing an antitrust investigation in China regarding its acquisition of Mellanox Technologies in 2020, a situation reminiscent of Qualcomm Inc’s lengthy 15-month antitrust case in China, as noted by TF Securities analyst Ming-Chi Kuo.

Stock Performance: Over the past week, Nvidia shares have increased by 4.84% and are up 191.09% year-to-date, significantly outperforming the Nasdaq 100, which saw a 0.83% decline over the past five days and a 31.67% increase for the year.

Benzinga reports that analysts have set a consensus price target of $170.56 for Nvidia. The highest estimate is $220 from Rosenblatt, while New Street Research’s lowest target is $120. The average price projection among firms like DA Davidson, Phillip Securities, and Truist Securities shows a potential upside of 10.67% for Nvidia, placing it at $154.67.

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