Although Nvidia’s (NASDAQ: NVDA) share price is showing weakness in tandem with the general technology sector, a trading expert has pointed out that the equity, based on its technical setup, is flashing promising growth potential.
As of the last day of October, Nvidia closed at $132.76, plunging almost 5% in a single day. These losses came after NVDA recently hit an all-time high near the $145 mark.
Notably, the chipmaker’s venture into artificial intelligence has led NVDA to record 175% growth in 2024.
Picks for you
The share price strengthened before the market opening on November 1, gaining 1.60% in pre-market trading.
NVDA’s share price path to $240
Regarding the stock’s growth potential, stock trading expert TradingShot indicated that Nvidia had bounced back from a strategic buy point identified in early August, aligning with the higher lows trendline within a two-year rising channel that started in October 2022, according to an analysis shared in TradingView post on October 31.
The expert noted that Nvidia’s recent price action shows that significant bullish momentum remains intact as long as it holds support at the 200-day moving average. In this case, with Nvidia trading below the midpoint of the upward channel, the potential for further gains appears substantial.
TradingShot’s projections include a short-term target of $190, supported by Nvidia’s strength above the 1D MA200. In a longer-term outlook, the analyst anticipates NVDA reaching the $240 level, corresponding with the 3.0 Fibonacci extension, projected around early 2025.
Nvidia’s current rally, similar to its bullish trend since October 2022, further supports this forecast. Both trends display similar patterns in the one-day relative strength index (RSI), suggesting Nvidia’s upward momentum could continue along this path.
Similarly, another trading expert, Peter DiCarlo, highlighted that Nvidia stock is currently in a compression phase, preparing it for a breakout. In an X post on October 30, DiCarlo suggested that once the stock exits this phase, it could aim for a new all-time target of $150.
Nvidia’s share price fundamentals
It’s worth noting that while technical indicators suggest more upside in the long term, the equity has faced pressure from the sell-off in the AI space and the broader technology sector.
Indeed, Advanced Micro Devices (NASDAQ: AMD) triggered part of this recent sell-off after the company’s AI chip focus disappointed investors.
Despite this price movement, another technical analysis reported by Finbold suggested that Nvidia’s share price could trade as high as $171 by Christmas Day. If this level is achieved, the stock could target $200, which remains in sight with analysts’ backing.
For instance, Bank of America (NYSE: BAC) semiconductor analyst Vivek Arya described Nvidia as a “generational opportunity” and recently raised the stock’s price target from $165 to $190. Achieving these milestones will largely depend on Nvidia’s performance in the third-quarter earnings, where expectations remain high.
The company’s guidance on the next-generation Blackwell chips, which are in high demand despite initial delays, will be a central element of the earnings report.
At the same time, most analysts have maintained a ‘Buy’ rating for the stock, noting that the chips have the potential to drive significant revenue growth for the semiconductor giant.
In summary, although Nvidia faces short-term challenges, the stock remains poised for further growth driven by solid fundamentals, including demand for Blackwell chips. Similarly, the bullish analyst consensus is a key factor to keep in mind.
