As 2024 comes to a close, the share price of semiconductor giant Nvidia (NASDAQ: NVDA) has exhibited some volatility, impacting the stock’s potential push toward the $150 mark.
The chipmaker ended the December 20 trading session up 3%, valued at $134.70. On the weekly chart, NVDA’s share price has posted modest gains of about 0.37%.
Meanwhile, the company’s dominance in artificial intelligence (AI) has helped Nvidia record a 179% growth year-to-date in 2024.
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However, the push toward $150 before the year concludes may still be in play, with technical indicators pointing toward a potential breakout, as pseudonymous stock trading expert Mike Investing noted in an X post on December 21.
According to the analyst, Nvidia is trading within an ascending channel formation, a bullish pattern characterized by higher highs and higher lows.
The expert pointed out that last week, NVDA briefly dipped below $130, falling below the channel’s lower boundary and triggering what looks like a bear trap. The quick rebound to $130 suggests the breakdown was false, setting the stage for a potential breakout.
As the expert highlighted, historical trends show that Nvidia displayed a similar fake breakdown within an ascending channel, and the stock rallied by over $30.
Now, with Nvidia trading near the midline of the formation, the potential for an upward breakout looks strong and could push the price to at least $150 before the year ends.
“The last time we had a setup that looked just like this, NVDA ran $30+. $150+ incoming before EOY,” the analyst noted.
Nvidia buyers defending key support range
On the other hand, Blue Chip’s chief technical strategist, Larry Tentarelli, also projects Nvidia might end the year on a strong note. In a December 21 analysis, Tentarelli stated that the AI stock emerged as one of the 65 S&P 500 stocks to close higher this week, defying broader market pressures.
Despite significant selling pressure that pushed the stock to weekly lows, he noted that NVDA held firm above the $125 mark, signaling strong support at this key level.
At the current valuation, the stock closely aligns with the 20-week moving average (MA), suggesting buyers are stepping in to defend the range between $125 and $130.
Tentarelli projected a possible breakout level of $145, which he expects to be sustainable into 2025. However, it’s worth noting that the expert had initially warned that Nvidia’s stock growth might have peaked due to its high market cap, suggesting it could lose its AI crown to emerging competitors.
Nvidia stock’s key fundamentals
Nvidia’s technical outlook is bolstered by strong fundamentals. For instance, despite concerns about antitrust investigations in China, investor optimism surged following a report confirming the smooth production of the Blackwell NVL/GB200 system.
Production issues have eased, with output expected to peak in Q2-Q3 2025, boosting stock momentum.
While 2024 production may fall short due to supply chain issues, growth is expected to accelerate in 2025, with the Blackwell chip playing a key role.
Additionally, some Wall Street analysts maintain a mixed outlook on the chipmaker. Citi’s Atif Malik reaffirmed a ‘Buy’ rating with a $175 target, citing GPU dominance, while Morgan Stanley set a $166 12-month price target.
However, claims about stock manipulation have arisen. In this case, Wall Street analyst Gordon Johnson highlighted a surge in NVDA’s one-month 25-delta put volume, suggesting artificial downward pressure, and criticized regulators for inaction despite Nvidia’s market influence.
In summary, despite some volatility, Nvidia’s strong fundamentals and technical indicators suggest potential growth toward reclaiming $150. This remains possible if NVDA breaks through the major resistance at $140.
Featured image via Shutterstock
