Why Nvidia (NVDA) stock is soaring
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Nvidia’s (NASDAQ: NVDA) share price is rebounding, with eyes on the $140 resistance as investors react positively to the company’s promising production developments. As of press time, NVDA’s stock was valued at $135.48, up almost 4% in the last 24 hours. On the weekly timeframe, the equity is down a modest 0.60%. Indeed, the current rebound is welcomed, considering the semiconductor giant briefly dipped below the $130 support zone during the December 17 trading session. NVDA one-day stock price chart. Source: Google Finance Driver of NVDA’s stock rally The short-term rally stems from an industry analysis report by market intelligence platform Trendforce, which indicated that the production of Nvidia’s Blackwell NVL/GB200 system is progressing as expected. Initially, there were concerns about the next-generation chip after it faced delays due to cooling and heat control issues. In the report, Trendforce indicated that mass production of this system is set to peak between the second and third quarters of 2025, contributing to a bounce in Nvidia shares. However, the report warned that the 2024 Blackwell figures will likely fall short, citing supply chain issues, but anticipates a possible ramp-up during the first quarter of 2025 and beyond. “The production of Blackwell GPU chips is progressing largely as expected, with only limited shipments in 4Q24. Production volume is anticipated to ramp up gradually from 1Q25 onward. However, as components of the AI server system are still undergoing supply chain adjustments, 2024 year-end shipments are expected to fall short of industry expectations,” the platform noted. Notably, Blackwell chips are expected to be a major cash flow driver for the company as it seeks to sustain its dominance in the artificial intelligence (AI) sector. To this end, Wall Street analysts remain bullish on the company. For instance, as reported by Finbold, Citi analyst Atif Malik…
Filed under: News - @ December 18, 2024 8:23 pm