Nvidia’s (NASDAQ: NVDA) share price recently hit a record high at $140 before the equity briefly retreated. Now, an analyst is warning that the chipmaker will likely see further pullback in the coming days.
Notably, on October 18, the NVDA stock failed to reclaim the record high, trading at $138, gaining about 0.8% for the day. Meanwhile, the company’s role in the artificial intelligence (AI) scene has contributed to its value surging 180% in 2024.
Although the stock continues to follow a bullish accumulation pattern, it faces a ‘big chance’ of correcting in the short term, as stock market analyst Peter DiCarlo highlighted in an October 18 X post.
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In this regard, DiCarlo warned that Nvidia’s price compression pattern highlights the potential for a correction, a signal of market indecision. While higher lows suggest an overall bullish trend, the stock’s inability to break decisively past crucial resistance levels such as $140 reflects the risk of a near-term pullback.
He cautioned that Nvidia could face a short-term rejection, with the potential plunge to support levels around $127 or even $124.
“NVDA tapped all time highs for a second today, then sold back off. We took out our $140 target, and long term I still think we can hit $150/$160. That said, there is a BIG chance price pulls back in the short term,” he said.
DiCarlo pointed to the market bias indicator, which has recently shifted to bullish after a brief pullback on October 2 around the $120 level, providing support to Nvidia’s continued rally.
If these levels are sustained, DiCarlo projects that Nvidia could hit $150 by December and climb as high as $170 in the next three to six months, especially if the market bias indicator continues to expand. Historically, similar expansions in this indicator have led to price surges of up to 48% in just 35 days and even 90% over 70 days.
NVDA stock bears are ‘spectacularly wrong’
On the other hand, Jon Markman’s analysis offered a contracting idea, noting that Nvidia bears are ‘spectacularly wrong.’ The analyst stated that bears argue that despite a series of upgrades and positive news around the company, the stock remains unable to break out above key resistance levels.
He noted that recent action in Nvidia’s chart suggests the bears are missing critical signs of strength. For instance, the equity’s price remains above the 50-day moving average (MA) and the 20-day EMA of $129.17. The breakout past recent highs and strong upward momentum indicate robust buying interest.
Analysts’ take on NVDA share price
These sentiments come when analysts offer different outlooks regarding Nvidia’s future based on the company’s expansion in the artificial intelligence space. Particular attention is paid to how the upcoming Blackwell chip line will impact the company’s future revenue.
To this end, Bank of America (NYSE: BAC) analyst Vivek Arya noted that the semiconductor giant has more growth potential if it can capitalize on the AI “generational opportunity.” While maintaining a ‘Buy’ rating, the analyst upgraded NVDA’s share price from $165 to $190.
“NVDA’s engagements span multiple verticals, and offerings such as AI Foundry, AI Hubs, NIMs are key levers to its AI leadership, not only on the hardware side but also on systems/ecosystems side,” BofA noted.
According to Arya, the bullish stance stems from key Nvidia fundamentals and recent industry events. For instance, the expert cited Taiwan Semiconductor Manufacturing Company’s (NYSE: TSM) recent blowout report, Advanced Micro Devices (NASDAQ: AMD) AI event, and strong Blackwell demand as factors driving more investor interest.
As reported by Finbold, other analysts are also bullish on the stock, noting that the $150 mark remains the next ideal target due to the optimistic outlook regarding Blackwell chips. Morgan Stanley’s (NYSE: MS) Joseph Moore has an ‘Overweight’ rating on the stock, noting that “the Blackwell ramp appears to be quite strong.”
In this regard, analysts maintain that 2025 will be a crucial year for the company. Todd Gordon, founder of Inside Edge Capital and portfolio manager, foresees Blackwell sales contributing to Nvidia’s revenue hitting $32.9 billion, $36.5 billion, $39.5 billion, and $42.9 billion over the next four quarters.
