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NVIDIA Share Price Rises As Recovery Gathers Momentum

NVIDIA shares (Nasdaq: NVDA) traded at an intra-day high of $821.02 on Thursday, having gained 2.53% at the time of writing. Nonetheless, the stock is still on a month-long downtrend. That said, the stock has shown signs of improvement in recent days, and is up by 5.7% on the weekly chart as of this writing. Nonetheless, NVIDIA share price has lost almost 11% of its value in the last month, signaling the underlying bearish momentum.

It is a trying time for US stock markets, with the “Magnificent 7” particularly impacted by the recent market downturn. This is likely to continue in the coming weeks, going by the latest data that showed a slowdown in US GDP growth rate. On Thursday, the Bureau of Statistics released preliminary US GDP figures which showed that the world’s largest economy grew by 1.6% in the first quarter of 2024, which is substantially below the forecast 2.5 per cent. Furthermore, it gets worse, considering that the economy grew by 3.4 per cent in the last quarter of 2023.

The negative sentiment resulting from weak GDP data will certainly be felt in the tech space, and NVIDIA is unlikely to escape unscathed. In addition, some analysts have predicted that the Fed is likely to retain the current 5.25-5.50% interest rates until September; which could hurt the business environment further.  Nonetheless, NVIDIA’s fundamentals look strong, with the AI momentum likely to keep it on the ascending lane.   Notably, the company is currently leading a pack of other tech giants as far as AI technology goes, and recently gave a glimpse of Blackwell, a family of processor chips and service platform that promises to disrupt the sector significantly.

Technical analysis

NVDIA share price is on an upward momentum, and the upside will prevail if the buyers keep the price above the 810.10 pivot mark. That will likely enable them to break the resistance at 832.44 and potentially rise further to test 840.98 in extension. On the other hand, a slip below the pivot will signal control by the sellers. The stock will find support at 796.96, but it could break the support and invalidate the upside narrative if the sellers extend their control. Furthermore, the resulting downward momentum could potentially test 774.63.