The stock price of semiconductor giant Nvidia (NASDAQ: NVDA) is looking to breach the $115 resistance mark after consolidating below it for several days.
Overall, the stock has made short-term gains, attempting a recovery after experiencing a downturn influenced by sector-wide challenges and geopolitical concerns.
As of the close of markets on July 26, NVDA was valued at $113 with 24-hour gains of approximately 0.7%. On the weekly timeframe, the stock is down over 6%. Despite recent fluctuations, NVDA shares remain up 135% in 2024.
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Analyst sets NVDA’s next target
Attention has shifted to Nvidia’s short-term price target. In this context, stock market analyst Peter DiCarlo forecasted a rebound in Nvidia shares in a post on X on July 29, predicting the equity would reach $128.
Although the stock experienced a significant dip earlier in July, it has shown signs of stabilization. DiCarlo’s analysis suggests that the current price level presents a prime buying opportunity for investors.
Notably, the stock’s recent performance indicates a double bottom formation near the $113 level, a bullish signal suggesting a strong support level. Additionally, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) show upward momentum.
DiCarlo’s projection of $128 aligns with Nvidia’s historical resistance and support levels. It highlights key levels around $126.72 and $128, which have previously acted as strong resistance points. Breaking above these levels would confirm a bullish reversal and potentially lead to further gains. The analyst predicts that the stock might reach this target by August 12.
“NVDA looking prime for a bounce back to $128.<…> Within 2 weeks it seems,” DiCarlo noted.
Impact of Nvidia Q2 2024 earnings report
DiCarlo’s projection aligns with the period when Nvidia is expected to announce its second-quarter 2024 earnings. If Nvidia’s stock hits $128, it could see further gains, especially if the company’s earnings report exceeds expectations.
Notably, positive results will likely boost investors’ interest in the equity. Expectations are that Nvidia will surpass estimates and meet its revenue target of $28 billion.
banking giant Goldman Sachs (NYSE: GS) has noted that the upcoming earnings report might showcase how Nvidia’s customers are leveraging artificial intelligence (AI) chips to make money.
This earnings segment is expected to alleviate recent concerns that customers aren’t seeing a return on their chips and are purchasing them just to keep up with AI chip demand. Therefore, this aspect could be a significant game-changer and help maintain Nvidia’s position as a semiconductor leader.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
