As Nvidia (NASDAQ: NVDA) stock continues to hold above the $170 level, investors who may have missed the rally to a new all-time high might still have an opportunity to buy into the semiconductor giant.
To that end, OpenAI’s artificial intelligence (AI) tool ChatGPT has highlighted key entry points for Nvidia that investors should keep in mind.
The AI’s outlook model came as the NVDA share price ended the last market session trading at $172.41, down about 0.34% on the day. Year-to-date, the stock has gained 24%.
Time to enter NVDA stock
According to insights from ChatGPT, the best entry points depend on investment horizon, coupled with patience and strategic buying, rather than chasing hype-driven moves.
In the short term, the AI model observed that Nvidia appears overextended, with technical indicators signaling overbought conditions.
While momentum remains strong, ChatGPT advised short-term traders to avoid buying near recent highs. Therefore, a more attractive entry would be during a pullback to the $160 and $168 range, a level where buyers have historically stepped in. If the Relative Strength Index (RSI) climbs above 70 without cooling off, the likelihood of a correction increases.
For medium-term traders eyeing Nvidia’s August 27 earnings, ChatGPT suggested using any 5% to 10% dip to accumulate, noting that the stock often rallies into earnings, especially when AI sentiment is strong. At the same time, rising data center spending by tech giants like Meta, Google, and Amazon could also boost demand.
On the macro side, Nvidia’s China exposure remains a wildcard. While H20 chip approvals are encouraging, U.S. export policies could shift abruptly. Therefore, ChatGPT advised buying on pullbacks driven by geopolitical headlines rather than chasing news-driven spikes.
Long-term investors’ entry into NVDA stock
For long-term investors with a one- to three-year outlook, ChatGPT recommended starting with a partial position of between 25% and 33% at current levels, then adding 5% to 10% dips, ideally between $155 and $165.
Notably, Nvidia recently reached a record high of nearly $175 following news of chip sales approvals in China. The ability to sustain this momentum hinges on general stock market sentiment and the upcoming earnings call.
Featured image via Shutterstock
