- NVIDIA rallied a bit during the trading session on Thursday, showing some kind of life again.
- That being said, this is a market that is watching other AI names play “catch-up.”
NVIDIA rallied a bit during the trading session on Thursday as we continue to see the stock market recover from some of the risk-off behavior. Nvidia of course, is a high-flying name, but recently has been more sideways than anything else.
I think a lot of this comes down to the fact that we are just simply rotating out of a handful of stock names into the wider market itself, and that actually is a very good sign. NVIDIA and 6 other companies cannot be the entire stock market for the rest of our lives.
Nonetheless, I do think that short-term pullbacks will offer buying opportunities in this market, as there has been a lot of interest in Nvidia for a while. And of course, with the artificial intelligence revolution, Nvidia will continue to be a major company.
However, you're starting to see some of the other companies really take off, such as Micron and Broadcom, as people are starting to expand into the ecosystem of artificial intelligence. It's not just about the GPUs anymore; it's about the entire structure of artificial intelligence.
With that being the case, it does make a certain amount of sense that Nvidia will struggle a bit for momentum, but really, I think that we still go higher going forward.
Top Regulated Brokers
Waiting for a Catalyst
The next earnings call is not until February 25th, so that's a little bit over a month away, but I think in the meantime, short-term pullbacks offer buying opportunities in a market that is clearly consolidating and waiting for the next catalyst. Maybe it will be earnings season, maybe not.
The 200-day EMA is now at the bottom of the range at $170, so that adds a little bit of additional padding. I look for value. I want to own Nvidia, and I think eventually it will go higher, but a lot of patience is probably needed.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.