The NVIDIA stock price added another 5% to set a new record closing price. Furthermore, NVDA’s performance helped the Nasdaq 100 achieve the same feat.
NVIDIA Corp (NVDA: NASDAQ) surged by $38.16 (+5.01%) to its highest-ever closing price of $799.40, following rival Broadcom Inc’s (AVGO: NASDAQ) support of its proposed takeover of UK chipmaker Arm.
The Chipmaker’s strength was a major contributor to the Tech-heavy Nasdaq 100, setting its own record close at 14,500.50.
An announcement that NVDA will partner with Alphabet Inc (GOOG: NASDAQ) in a new Artificial Intelligence (AI) project provided additional fuel for the rally. Of late, the reasons to buy the stock seems to be increasing almost daily.
The NVIDIA stock price has gained 12% since the report’s release, so I guess that question has been answered.
NVDA price prediction
Clearly, the global pandemic created a perfect storm for the NVDA stock price. Subsequently, NVIDIA has gained 357% from the March 2020 low.
Not only that, the stock is $176% higher than its pre-pandemic record of $292.00.
It becomes a little tricky to advocate buying at this price considering the vertical lift-off over the recent weeks. Now, this is not to say the stock won’t continue to go higher. However, the indicators are starting to get stretched.
The Relative Strength Index reading of 80.13 is a sign that NVDA is overbought. Whilst this isn’t a prediction of impending doom, it does point to a market that needs to cool down to continue an orderly ascent.
To summarise, if I were a long term holder, I would be happy to let this one run. Nonetheless, new buyers chasing the NVIDIA stock price higher must accept that many prospects may already be baked into the price.