Nvidia’s Stock is Experiencing a Breakout, According to Fairlead Strategies

NVIDIA’s stock is experiencing significant momentum and may be on track to reach its June high of approximately $141 per share, as indicated by technical analyst Katie Stockton from Fairlead Strategies.

Stockton noted, “NVIDIA confirmed a triangle breakout yesterday, supporting near-term movement toward its June high (~$141). While the S&P 500 and Nasdaq 100 have seen short-term momentum wane, NVIDIA’s breakout is likely to mitigate a substantial pullback in the major indices. This is one reason we maintain a neutral short-term outlook for U.S. equities in today’s Fairlead Tactics.”

The stock has risen for six consecutive sessions, with a small increase of 0.12% noted today, resulting in an impressive year-to-date gain of over 170%.

Analysts are increasingly optimistic about the company’s Blackwell product, which CEO Jensen Huang described as experiencing “insane” demand. He stated, “Blackwell is in full production, according to plan, and the demand for it is insane. Everyone wants to get their hands on it first.”

Additionally, Taiwan Semiconductor Manufacturing recently reported that its September sales exceeded expectations, driven by strong demand for AI chips. The company reported revenue for September 2024 at approximately NT$251.87 billion, reflecting a 0.4 percent increase from August 2024 and a 39.6 percent rise compared to September 2023. This company manufactures NVIDIA’s AI chips.

Moreover, analysts at Morgan Stanley mentioned that revenue from Blackwell production in the first quarter of 2025 may surpass that of the Hopper series. Blackwell chips are expected to command a price premium, with prices for B200 chips being 60-70% higher than H200 models, positioning Blackwell revenue to potentially outpace Hopper in the upcoming quarter.