During the September 11 trading session, technology giant Nvidia (NASDAQ: NVDA) once again proved its status as the barometer of the stock market sentiment.
The stock sustained its short-term bullish momentum, driving gains across the tech sector, buoyed by a positive outlook from the company’s CEO, Jensen Huang.
Nvidia stock received a significant boost after Huang noted that the company was experiencing incredible demand for its chips. Speaking at the Goldman Sachs (NYSE: GS) Technology Conference on September 11, the executive stated that “everything is sold out,” noting that AI customers are counting on the company’s infrastructure.
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The market viewed Huang’s statement as a positive outlook for Nvidia, indicating that the company will likely continue dominating the semiconductor sector. As a result, Nvidia shares surged, ending the trading session up 6%, with a valuation of $116, extending its impressive 2024 rally by 142% year-to-date.
Growing Nvidia customer tension
Despite the positive news, Huang acknowledged growing tension with clients, driven by Nvidia’s struggle to meet surging demand.
“Delivery of our components, technology, infrastructure, and software is really emotional for people because it directly affects their revenues, it directly affects their competitiveness. And so we probably have more emotional customers today and deservedly so. And if we could fulfill everybody’s needs, then the emotion would go away. But it’s very emotional, it’s really tense,” he said.
NVDA stock price prediction
Based on Huang’s sentiment regarding customer tension, Finbold consulted OpenAI’s platform ChatGPT-4o to determine how the stock might trade in the future.
ChatGPT-4o stated that supply concerns might impact investor sentiment around NVDA, potentially leading to adverse price movements. Additionally, the OpenAI tool suggested that the equity could rally if the chipmaker reassures customers about meeting supply demand. If the issue persists, it may lead to further declines.
Regarding specific price movements, the AI model projected that if Huang’s admission is viewed negatively, the NVDA could correct to between $100 and $105 within the next two months. On the other hand, if the issue is resolved, the equity could rally to $130-$140 in the next three months.
NVDA stock technical outlook
Additionally, based on Nvidia’s short-term momentum, a stock market analyst with the pseudonym Market Maestro projected in an X post on September 11 that the NVDA is on track for a bullish long-term outlook driven by the “Cup and Handle” pattern on the weekly chart. The pattern indicates the possible continuation of the prevailing uptrend.
However, he warned that short-term obstacles may challenge Nvidia’s ascent, such as resistance at the $150 mark. The expert also noted the 78.6% Fibonacci retracement around $129, which may also be a potential price barrier.
Nvidia’s fundamentals
It’s worth noting that Nvidia investors will be hoping that, at the current valuation, the equity might find some stability. Notably, in recent weeks, NVDA has witnessed massive volatility and price swings, leading to the stock being compared to trading like a penny stock.
In the meantime, the semiconductor manufacturer is still backed by key fundamentals, with demand for its AI chips remaining high. Notably, the company’s customer base continues growing, with reports indicating that Saudi Arabia might join the foray.
In this regard, the U.S. government is reportedly looking into enabling Nvidia to export chips to Saudi Arabia to help the country train and run AI models. If the deal comes to fruition, Nvidia will likely see a surge in revenue, which grew 122% year-over-year for Q2 2024, coming in at $30.04 billion.
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