Could Nvidia Stock Mark Peak AI Today?
Is it Nvidia Capitulation Day?
Nvidia's stock price rallied $200 million post-market trading after the company mentioned AI 25 times in its earnings call.
FinTwit has been buzzing about Nvidia's results, and Jim Cramer will likely lead the assault with wall-to-wall coverage. Post-market trading volumes are very high, and the stock made a high of 394.49.
· It has all the hallmarks of a capitulation (distribution day)
· With it should drag Semiconductor, AI-related stocks, and Megacap
o Microsoft, Baidu, Google, Adobe, C3 AI, IBM, Micron Technology, Oracle, Palantir
Sentiment
The sentiment in the market seems to be one of FOMO or fear of missing out. This is evident in some of the cover stories in financial publications presented here.
A $6 trillion AI boom is just starting. Here are 5 ways for investors to capitalize on the tech revolution, according to Morgan Stanley
NVIDIA Medium Term Pre-market
The pre-market rally has all the hallmarks of a capitulation overthrow. The 13-day RSI is 83 and above the 2 standard deviations upper band on a shorter horizon. Volume is also high.
A reversal back inside the October 2022 uptrend channel will be the first mark of reversal taking place.
NVIDIA Long-Term Daily
The second signal to watch will be if the stock closes below the open, especially if it is below the 22nd November 2022 high of 346. If this happens, it would be a sign that the uptrend is ending and that prices may be due for a decline.
The annual pivot R2 is 386, which would typically be a good place to reduce risk.
FOMO / greed can be a dangerous emotion.
Sell side Raisning NVIDIA price target:
- Rosenblatt Raises Target Price To $600 From $320
- KeyBanc Raises Target Price To $500 From $375
- JP Morgan Raises Target Price To $500 From $250
- Barclays Raises Target Price To $500 From $275
- Evercore ISI Raises Target Price To $500 From $320
- UBS Raises Target Price To $475 from $315
- Bernstein Raises Target Price To $475 from $300
- Jefferies Raises Target Price To $472 From $300
- Morgan Stanley Raises Target Price To $450 from $304
- Raymond James Raises Target Price To $450 from $290
- BofA Securities Raises Target Price To $450 from $340
- BMO Capital Raises Target Price To $450 From $350
- Wells Fargo Raises Target Price To $450 From $320
- Piper Sandler Raises Target Price To $440 From $300
- Citi Raises Target Price To $420 from $363
- Oppenheimer Raises Target Price To $420 From $350
Source: Nicholas Brown @News_By_Nick