Nvidia Hits $4 Trillion Market Value, Analysts Eye Key Support Levels

Nvidia's stock price has hit a record high and reached a market capitalization of $4 trillion, driven by strong demand for its AI chips. The stock has trended sharply higher since April, with a bullish engulfing pattern and a climb above the 50-week moving average. Investors should watch key support levels near $130 and $97. Bars pattern analysis forecasts an upside target of around $300 and indicates the trend higher may last until late December.

Nvidia Corporation made history on Wednesday, becoming the first company to reach a $4 trillion market capitalization milestone. This significant achievement underscores the growing demand for AI chips and Nvidia's leadership in the field.

Nvidia's stock (Nasdaq: NVDA) has seen a remarkable rebound since April, with a 20% increase year-to-date and a 88% rise from its early-April low. The stock closed Wednesday at just over $163 per share, up nearly 2% from the previous day [1]. This surge is attributed to the company's robust AI chip sales, as major technology companies continue to invest in AI capabilities.

The stock's performance has been driven by a strong uptrend, characterized by a bullish engulfing pattern in early April and a climb above the 50-week moving average in May. Technical analysis indicates that the stock has more room to test higher prices before consolidating, with the relative strength index (RSI) remaining below overbought levels [2].

Investors should keep an eye on key support levels near $130 and $97. During potential pullbacks, the stock could find support around these levels, with the $130 level near the upward sloping 50-week moving average and a trendline connecting trading activity from June 2022. If these levels are breached, the stock could fall to lower support around $97, near a prominent swing high from March 2024 [2].

Bars pattern analysis projects an upside target of around $300, suggesting that the current uptrend may continue until late December 2025 [2]. This analysis is based on the stock's recent price action, which closely replicates a prior trend from January to August 2023.

Despite geopolitical risks and export control concerns, Nvidia's demand for its chips remains strong. The company's strong fiscal first-quarter results and positive guidance for the current quarter indicate that the company is well-positioned to weather these challenges [3].

In conclusion, Nvidia's $4 trillion market capitalization milestone is a testament to the company's leadership in the AI chip market. The stock's strong performance and continued demand for its products suggest that the company's growth story is far from over.

References:
[1] https://www.fastcompany.com/91365324/nvda-stock-price-today-nvidia-4-trillion-historic-market-cap
[2] https://www.investopedia.com/watch-these-nvidia-stock-price-levels-as-ai-chip-giant-hits-usd4-trillion-market-value-11768805
[3] https://www.thestreet.com/investing/analyst-sends-bold-message-on-nvidia-stock-amid-trumps-new-tariffs