- Nvidia stock price is enjoying a strong upsurge and has just extended its record highs. Here's why the momentum will likely continue.
Nvidia stock price extended the upside on Friday, hitting a new record high of $167. The AI chipmaking heavyweight is on a roll, having become the world’s first $4 trillion market cap company. Furthermore, the strong demand for its Blackwell chips has investors in an upbeat mood ahead of its Q2 earnings results expected in late August.
Meanwhile, insider selling is still ongoing, with the latest one being by CEO Jensen Huang. The sale was for 175,000 shares worth around $152 million, but is unlikely to interrupt the current momentum. Notably, Huang’s sale was under a prearranged Rule 10b 5-1, meaning that it wasn’t informed by pressure to take profit following the recent surge.
Meanwhile, Huang met President Donald Trump prior to his visit to China. The meeting is expected to pave the way for potential easing of regulatory restrictions imposed on Nvidia (NASDAQ: NVDA) exports. The company has recently stated that the restrictions could cost it as high as $15 billion and has been developing chips tailored for China to get around the barriers.
A breakthrough in Huang’s China visit could inject fresh impetus and propel Nvidia stock price higher. On the technical front, the stock has a strong upside momentum, having gained 15% in the last month, with the daily RSI at 76. However, the RSI reading also signals overbought conditions which could bring headwinds.
Nvidia Stock Price Prediction
Nvidia stock price momentum signals control by the buyers above $164. That will likely see the first resistance come at $168.00. If the buyers extend their control, the price will break above that level and potentially test $170.
On the other hand, breaking below $164.50 will favour the sellers to take control. In that case, the first support will likely come at $162.70. The upside narrative will be invalid if the price breaks below that level. Also, the resulting momentum could push the action lower and test $160.70.
