Nvidia’s (NASDAQ: NVDA) share price is under pressure after falling below $140, but technical indicators suggest a potential breakout as the year ends.
The semiconductor giant ended the latest trading session valued at $134.25, down over 2% for the day. On the weekly chart, NVDA is down about 3%. The company’s venture into artificial intelligence (AI) has helped the equity rally 178% year-to-date.
NVDA’s end year rally
When looking at the next price target, a stock trading expert with the pseudonym Mike Investing noted in an X post on December 14 that Nvidia appears primed for a major end-of-year surge after months of consolidation.
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The technical setup shows that the chipmaker has been trading within an ascending channel—a bullish price pattern characterized by higher highs and higher lows—indicating strong underlying support and consistent upward momentum.
The expert observed that NVDA has spent over two months stabilizing within a defined price range, building momentum for a potential breakout. He noted that during the December 13 trading session, NVDA dipped into a critical two-year demand zone—a technical level where significant buying interest has historically emerged.
This zone attracted over $20 million in call options, signaling bullish sentiment from institutional and retail traders alike. The analyst anticipates Nvidia’s stock could reach $160 by the end of 2024.
“With over 2+ months of consolidation, NVDA is set up for a massive end-of-year rally.<…> $160 is incoming by the end of the year,” the expert said.
At the same time, the possibility of a bullish breakout is backed by analysis shared by charting platform TrendSpider. According to the outlook, Nvidia is showing a potential bullish reversal with an inverse head-and-shoulders pattern forming between late July and mid-December.
The price is approaching the descending neckline resistance from its late July highs.
This technical alignment signals a bottoming phase, with the ‘head’ marked in late October and ‘shoulders’ forming in early September and late November. A confirmed breakout above the neckline could push NVDA toward the $150 level, while failure to break through might see prices revisit support near $120.
Nvidia stock fundamentals
Indeed, Nvidia has been a dominant player in the AI space thanks to its groundbreaking chips, and the upcoming Blackwell product line is expected to spur further growth. However, the stock’s recent inability to sustain its valuation above the $140 level has raised questions about whether the AI momentum remains intact. Part of this correction was triggered by an antitrust probe into the company by Chinese authorities.
Already, experts such as Blue Chip technical analyst Larry Tentarelli have warned that Nvidia might have reached its peak, cautioning that the current high market cap could limit further growth. Although he acknowledged the company’s ability to continue dominating AI, other emerging players, such as Palantir (NASDAQ: PLTR), might surpass the growth momentum.
Nevertheless, a section of Wall Street remains bullish on Nvidia’s prospects. For instance, Jordan Klein, tech sector strategist at Mizuho (NYSE: MFG), expects Nvidia’s stock price to rally to about $160-$170 in the first quarter of 2025, anticipating an optimistic outlook from management during investor meetings in early January.
The outlook is backed by the company’s projected continued strong financial performance. This prediction comes after Nvidia reported more than anticipated Q3 revenue of $35.1 billion, a 17% increase quarter-over-quarter and a 94% jump year-over-year.
Similarly, on December 3, Saxo Bank made a bold prediction, projecting that Nvidia could hit a valuation of $7 trillion by 2025.
The bank’s Chief Macro Strategist, John Hardy, argued that Nvidia’s dominance in the AI boom positions it as the ‘shovel seller’ in a modern gold rush. With increasing demand for powerful data centers and advanced chips, Hardy believes Nvidia is uniquely positioned to capitalize on this technological shift.
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