In the aftermath of Nvidia’s (NASDAQ: NVDA) announcement about several innovative features and solutions aimed at accelerating advancements in humanoid robotics and expanding the integration of generative artificial intelligence (AI) in diverse sectors, the repercussions are likely to reverberate in the company’s stock value.
Nvidia has unveiled a range of services and resources to assist leading robot manufacturers, AI developers, and software innovators worldwide in shaping the forthcoming era of humanoid robotics, as highlighted by Nvidia CEO Jensen Huang during the SIGGRAPH 2024 conference. As stated by him:
“Robotics is positioned as the next frontier for AI, and the rise of humanoid robots presents promising opportunities. (…) We are advancing the entire NVIDIA robotics ecosystem to empower global developers and enterprises to utilize the platforms, acceleration libraries, and AI models that best suit their needs.”
Moreover, Nvidia has rolled out several updates to its software offerings to simplify the utilization of generative AI across a wider array of industries. These tools encompass Nvidia inference micro services (NIMs) – software bundles aimed at tackling the operational hurdles associated with leveraging AI for specific functions, as highlighted by Bloomberg on July 29.
Evaluation of Nvidia Stock Value
Despite the recent downtrend in Nvidia’s stock prices, reflecting a 5.93% decrease over the week and a 9.98% drop in the last month, following a successful first half of 2024 and a year-to-date (YTD) surge of 131.82% as of July 30, the consequences of the latest revelations are yet to be fully realized.
While NVDA shares experienced significant growth previously, including hitting a new all-time high (ATH) in mid-June, indications suggest that this peak might have represented the pinnacle for the tech behemoth, at least based on insights from the research firm established by the notable investor and analyst Puru Saxena.
Technical Signals for Nvidia Stock Value
Despite holding a commendable technical rating, the current setup for Nvidia stock does not present an optimal scenario due to the volatility in its price movements. Notably, the support level is situated at $111.58, with resistance at $123, formed by a convergence of various trend lines spanning multiple timeframes.
Furthermore, although the short-term (5, 10, and 20) simple moving averages (SMA) are displaying a negative trend, the 50, 100, and 200 SMAs are still in positive territory. Additionally, the relative strength index (RSI) 14 presently stands at 39.61 points according to the latest technical analysis.
Future Outlook for NVDA Stock
Financial analysts who have been issuing forecasts on Nvidia stock prices in the past three months have shown optimism regarding the resurgence of NVDA shares, predicting an average price of $142.74 over the next 12 months. They uphold a ‘strong buy’ recommendation for Nvidia, with four analysts suggesting to ‘hold’ the stock.
In an interesting development, Jim Cramer, host of CNBC’s Mad Money, expressed significant positivity about Nvidia, asserting in 2021, following a visit to Nvidia’s Silicon Valley headquarters and discussions with Huang, that Nvidia “holds the potential to become a $10 trillion stock.”
Additionally, in June of this year, prior to the 10-for-1 NVDA stock split, Beth Kindig, CEO of I/O Fund, envisioned Nvidia achieving a $10 trillion market cap by 2030, citing rapid advancements in AI chip development, a sturdy economic moat via Compute Unified Device Architecture (CUDA), and other segments within the AI domain.
The outlook for Nvidia shares currently remains somewhat uncertain, and only time will clarify whether the stock market interprets the recent positive trends in the Nvidia ecosystem as optimistic and mirrors this in the NVDA stock prices.
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