NVIDIA Lifts Nasdaq to New Records

  • NAS100
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  • NVDA.us
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NAS100 Analysis

The generative artificial intelligence (AI) boom has been the main driver behind Wall Street's 2023 rally since last year and continues to fuel the advance this year. NVIDIA is the of this revolution, since its chips power large language models and applications like ChatGPT. The firm blockbuster results last month due to AI-related sales and pointed to continued strong demand ahead [1]. Trying to feed the frenzy and widen its lead, it unveiled the newest AI architecture this week and accelerated its cadence, with its previous chips not even having shipped yet. [2]

Nvidia's pioneering work in this transformational technology has sent its stock to roughly 150% year-to-date rally. NVDA.us closed to new all-time high on Wednesday and became the second biggest US firm, as its $3.01 trillion market cap places it above Apple, which lags in the AI race. Adding to the AI optimism, Intel and AMD also announced new AI chips, trying to catch up to their rival.

Along with strengthened expectations for tow rate cuts by the Fed, the news propelled NAS100 to new records, bringing 19,400 in its crosshairs. From a purely technical prospective, the move looks stretched and RSI has not followed higher. This divergence creates scope for a pullback that could challenge the EMA200 (18,400), but strong catalyst would be required for sustained losses below it.

The trajectory of NAS100 will be determined by Friday's NFPs which can inform policymaking and affect market pricing around the Fed's rate path. The US labor market is strong, supporting the central bank reluctance to lower rates, which is dictated by stubborn inflation. Recent data however have shown signs of cooling.

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 06 Jun 2024 https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-first-quarter-fiscal-2025

2

Retrieved 15 Jul 2024 https://blogs.nvidia.com/blog/computex-2024-jensen-huang/

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