- Summary:
- Nvidia stock price has been a victim of its own success, as investors pause to take profits with lingering concerns over margins.
Nvidia stock price declined once more on Monday, breaking its brief two-session gains to drop marginally by 0.1 percent to trade at $138.25. The chip-making giant has been trading mostly in the red since it released it latest quarterly earnings on November 20. The downward pressure is largely attributed to profit-taking, as the stock remains with gains of 180 percent year-to-date.
What’s driving Nvidia price?
Nvidia (NASDAQ: NVDA) is a victim of its own success, coming under pressure despite reporting another set of impressive results in the last quarter. Investors have opted to pay greater attention to NVDA’s margins as the key indicator to its upside potential. This is largely driven by the desire to have the company match their high expectations resulting from its dominance of the AI industry.
Despite the concerns around its margins, Nvidia continues to give a glossy outlook of its performance. It is counting on the strong Blackwell sales to grow its margins from 74.6 percent reported in the last quarter.
How will the Trump presidency affect Nvidia?
The incoming Trump administration could present a bag of mixed fortunes for Nvidia. First, the new president is expected to lower corporation taxes. That could see Nvidia buy back more of its stock, in addition to the $26 billion spent toward the program in the fiscal quarter ending June 2024. However, the potential escalation of trade tarrif wars under the new administration could result in retaliatory measures that could hurt Nvidia.
In the meantime, Nvidia stock price will likely return to the ascending trajectory after the recent consolidation. The company’s healthy order book and strong baseline will likely continue attracting more institutional and retail investors in the foreseeable future.
Nvidia stock price prediction
Pivot: NVDA price pivots at $137.80, and the upside will prevail if action stays above that level. Conversely, moving below that mark will favour the sellers to take control.
Resistance: First resistance at $138.80, Second resistance at $140.00
Support: First Support at $136.70, below which the upside narrative will be invalid. Second Support at 135.50.
