Nvidia remains rangebound but has seen a lot of upward pressure on Wednesday, as the “risk on” behavior of traders has reentered the market.
NVDA
Nvidia remains very noisy in general, but the Wednesday session has been good to it as we are starting to see more risk appetite out there for traders around the world. Ultimately, this is a market that I think is still hanging around the same consolidation area with the $170 level underneath offering a bit of a floor and the $195 level above offering a bit of a barrier. This is a range that I think we will need to see something special to break out of, but the support of NVDA is something that you should be aware of.
PRIMARY BELLWETHER FOR AI GAINS
Ultimately, I do think this is a market that is still going to be the primary bellwether for AI gains. Recently the CEO has announced that there is a $1 trillion order backlog for the Blackwell and Vera Rubin architectures. Demand is through the roof, but the stock has been facing headwinds from renewed Chinese export restrictions and broader market sensitivity to US interest rate volatility.
Nonetheless, I am still very bullish of this market, and I do think the short-term pullbacks like we’ve just seen end up being buying opportunities in this market as there are plenty of traders out there willing to get involved given enough time. This is a major holding of passive investors, and still a way that a lot of them choose to play Artificial Intelligence.
That being said, I would be wrong if we broke down below the $170 level and at that point in time it could lead to something much more destructive. I think noise and choppiness will probably be the two words that I would attach to this market, but I believe ultimately, we will resolve to the upside.