- Morgan Stanley just reiterated that they expect data centers to continue to demand Nvidia hardware, and as a result, the AI scenario is still very bullish.
Nvidia
NVIDIA did gap at the open on Monday, as we have seen quite a bit of negative pressure and opened up near the $187 level. That being said, the market has gone back and forth since then, in what I would assume is fairly quiet and thin trading on Monday.
But at the end of the day, Nvidia is still one of the favorite stocks going into January. Morgan Stanley just reiterated that they expect data centers to continue to demand Nvidia hardware, and as a result, the AI scenario is still very bullish. Is the artificial intelligence sector of the stock market in a bit of a bubble? It’s very possible.
NVIDIA is Going Nowhere
But Nvidia is the nuts and bolts of the entire thing. NVIDIA is going nowhere. It’s got a viable business outside of artificial intelligence, although obviously most of the gains have been made after AI really took off. At this point, if you’re going to open up a data center, you only have a few choices, and Nvidia is by far the strongest one. NVIDIA is still building new chips, and they are looking at finding ways to export to China, so that should help as well.
Top Regulated Brokers
As a result, I think you continue to see the $170 level as a bit of a floor, especially now that the 200-day EMA is reaching toward it. The next couple of days could be a little bit negative, but quite frankly, that should be thought of as a potential buying opportunity. I like the idea of buying a drop and then a bounce in Nvidia and holding onto it. I think this is more of a longer-term play than a short-term play, and once we clear the $200 level, we could start to see momentum pick back up. That probably happens in the second or third week of January. It just depends on when people come back from the holidays and really start to put money to work.
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