With Nvidia’s (NASDAQ: NVDA) stock dominating the market in 2024, historical data suggests that the equity is now presenting a compelling buying opportunity for investors seeking to capitalize on the artificial intelligence (AI) boom.
The AI momentum has seen Nvidia rally 193% year-to-date, trading at $141 as of the last trading session.
In the past week, the equity has shown some volatility, plunging by 0.5%, but NVDA continues to trade within the range of its all-time high. As of pre-market trading on October 30, NVDA was down 0.26%.
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Historical NVDA share price returns
In this case, 19 years of seasonal analysis suggest this week stands out as the best-performing period for Nvidia stock, according to data shared by TrendSpider on October 29.
The chipmaker has recorded a 79% win rate this week, delivering a return of 4.89%, ranking as one of the strongest seven-day period for equity. Therefore, the returns might be more compelling for short-term investors seeking to capitalize on historical profit potential.
Meanwhile, if the stock replicates this movement, it could anchor the equity to a strong year-end finish.
This sentiment complements another Finbold report that suggested that the last week of October has historically marked a bullish move for stocks in the S&P 500 and the Nasdaq 100 to end the year strong.
NVDA stock possible headwinds
As things stand, Nvidia’s mimicking this historical performance is not guaranteed, considering the stock will likely be impacted by general semiconductor trends.
In particular, semiconductor stocks are under immense pressure after Nvidia’s competitor Advanced Micro Devices (NASDAQ: AMD) tumbled after a disappointing Q3 2024 earnings report. Investors reacted negatively to the earnings despite AMD CEO Lisa Su suggesting that the company’s product demand remains strong.
This aspect has led to concerns about whether the AI bubble might burst in the near future.
Nvidia particularly presents an opportunity for investors, considering the stock’s dominance in the AI space at a time when analysts are projecting further growth. Part of this growth is tied to key fundamentals, such as demand for its next-generation Blackwell chips.
To this end, some analysts expect the company will likely push toward the $200 spot by the end of 2024, and the upcoming Q3 earnings report will play a crucial role in pumping the stock in this direction. Additionally, technicals suggest that Nvidia will likely see a target of over $171 by Christmas 2024.
What next for NVDA stock price
When looking at the next NVDA stock price movement, stock market analyst Jon Markman, in an X post on October 28, pointed out that the equity has more upside if it continues to trade above the $140 support zone.
Nvidia’s share price has exhibited sideways movement around the $140 spot. This pattern can be considered healthy; it enables NVDA to establish momentum to back the stock in preparation for another price breakout,
Lastly, technical indicators suggest that Nvidia has more upside potential in the short and long terms, considering its trading above its 50-day and 200-day moving averages.
Featured image:
Tigarto – Porto, Portugal – April 30, 2024. Digital Image. Shutterstock.
