Despite the tumultuous environment in the global market, Nvidia’s has strong fundamentals. The company’s control of the global AI chips market stands at around 80% and the demand for its CUDA software and Blackwell GPUs is expected to stay on the ascending trajectory for the foreseeable future.
However, NVDA price will likely face substantial downward pressure when markets open on Wednesday. The company announced on Tuesday that it could take a $5.5 billion hit from the China-US trade war. Nvidia says that the US Government told it last week that export of its H20 chips to mainland China and Hong Kong will require permits for the “indefinite future”.
The move translates to restricted shipments of the high grade chips whose demand has stayed strong despite Blackwell’s launch. Despite the substantial loss forecast, Nvidia stock price could weather the storm in the medium and long term. The company has been posting forecast-beating earnings for the past two years, and its strong balance sheet should cushion it from the shock.
Nvidia Stock Price Prediction
Nvidia stock price pivots at $106 and the momentum indicator favours the sellers to stay in control if action stays below that level. That will likely see the first support established at $100. In addition, a stronger downward momentum could take the price lower to test $95.
Conversely, breaking below $106 will shift the momentum to the upside. The stock will likely meet initial resistance at $112. The upside narrative will be invalid if the price breaks above that level. Also, an extended control by the buyers could extend gains to test $118.
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