Nvidia (NASDAQ: NVDA) has had a stellar run, recently hitting a record high of $144, and the stock’s technical setup signals further upside by Christmas 2024.
This bullish outlook has emerged as Nvidia maintains its price above the $140 support level. The equity ended the Friday’s trading session at $141.54, up 0.80% for the day. Ahead of the Monday session, NVDA is up 1.24% in pre-market trading.
Notably, the chipmaker’s dominance in artificial intelligence (AI) has helped NVDA’s share price rally 193% year to date.
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Now, at the current valuation, NVDA has approached a key technical level based on Fibonacci analysis that signals a push past $170 on December 23, just before Christmas day, according to TrendSpider’s analysis shared on October 28.
Specifically, the stock is close to the 1.0 Fibonacci retracement level at $140.70, which has opened the door to claiming the “Golden Fibonacci Extension” at the 1.618 level, which sits at around $171.70.
Reaching this level could imply a bullish continuation, especially if Nvidia maintains its current momentum. Supporting this view, Nvidia’s daily P/E ratio indicator shows around 64.05, reflecting strong investor confidence in the stock.
Nvidia’s stock key fundamentals
As things stand, Nvidia’s fundamentals—especially the company’s role in AI—are key catalysts for growth. Reaching the $171 mark will largely depend on the upcoming Q3 earnings report, where analysts’ consensus earnings per share (EPS) forecast stands at 0.69.
The earnings report will also be crucial as Nvidia provides guidance on its next-generation Blackwell chips, which are already experiencing strong demand, according to CEO Jensen Huang.
Initially delayed, the Blackwell chips are expected to contribute to the company’s revenue starting in Q4. This robust demand is projected to extend into the next fiscal year, likely driving further growth at a time when some market players believe Nvidia is undervalued despite recent momentum.
If the semiconductor giant posts solid Q3 financials and offers an optimistic Q4 outlook, the stock could reach a record high of $200. Some analysts maintain that this target is achievable, citing Nvidia’s leadership in AI and the rollout of new products.
For instance, Bank of America (NYSE: BAC) semiconductor analyst Vivek Arya described Nvidia as a “generational opportunity” and recently raised the stock’s price target from $165 to $190.
What next for NVDA stock price
Meanwhile, stock trading expert Jake Wujastyk noted in an October 27 post on X that Nvidia’s share price may have signaled a potential bullish breakout, surging 16.55% this month.
This breakout reflects the stock’s movement out of a tight consolidation pattern. Nvidia’s recent price action, which formed a wedge pattern often associated with volatility compression, supports this bullish outlook.
While Nvidia’s fundamentals and technical indicators appear favorable, caution is still warranted.
Prevailing concerns include the risk of an AI bubble bursting, which could negatively impact the technology sector. Additionally, Nvidia faces growing competition from Advanced Micro Devices (NASDAQ: AMD), whose chips are poised to challenge Nvidia’s dominance.