Following Nvidia’s (NASDAQ: NVDA) revelation of a myriad of new features and offerings designed to hasten the progress of humanoid robotics development and expand the use of generative artificial intelligence (AI) in various industries, the repercussions might soon be felt in the company’s stock prices.
Nvidia has rolled out a plethora of services and resources to aid top robot manufacturers, AI developers, and software creators worldwide in shaping the next era of humanoid robotics, as highlighted by Nvidia CEO Jensen Huang at the SIGGRAPH 2024 conference. As per his statement:
“Robotics is poised to be the next frontier for AI, and the emergence of humanoid robots holds great promise. (…) We are evolving the entire NVIDIA robotics ecosystem, enabling global developers and enterprises to leverage the platforms, acceleration libraries, and AI models that align best with their requirements.”
Furthermore, Nvidia has introduced various updates to its software offerings to simplify the utilization of generative AI for a broader spectrum of businesses. These tools include Nvidia inference micro services (NIMs) – software packages that address the operational challenges associated with employing AI for specific functions, as Bloomberg reported on July 29.
Analysis of Nvidia Stock Prices
Despite the recent downward trend in Nvidia stock prices, reflecting a decline of 5.93% over the week and 9.98% in the last month, following a successful first half of 2024 and a year-to-date (YTD) gain of 131.82% as of July 30, the impact of the latest announcements is yet to be fully realized.
While NVDA shares had enjoyed remarkable success previously, including reaching a new all-time high (ATH) in mid-June, indications suggest that this peak may have marked the zenith for the technology giant, at least according to the insights from the research firm founded by the distinguished investor and analyst Puru Saxena.
Technical Indicators for Nvidia Stock Prices
Despite holding a commendable technical rating, the current setup for Nvidia stock does not present an ideal scenario due to the volatility in its price movements. Notably, the support zone lies at $111.58, with resistance at $123, formed by a confluence of various trend lines across multiple timeframes.
Moreover, while the short-term (5, 10, and 20) simple moving averages (SMA) are trending negatively, the 50, 100, and 200 SMAs are still in positive territory. Additionally, the relative strength index (RSI) 14 currently stands at 39.61 points as per the latest technical analysis.
Future Prospects for NVDA Stock
Financial experts who have been offering predictions on Nvidia stock prices in the past three months have expressed optimism regarding the recovery of NVDA shares, projecting an average price of $142.74 within the next 12 months. They continue to maintain a ‘strong buy’ rating for Nvidia, with four experts advocating to ‘hold’ the stock.
In an intriguing turn of events, Jim Cramer, host of CNBC’s Mad Money, expressed strong optimism about Nvidia, asserting back in 2021, after a visit to Nvidia’s Silicon Valley headquarters and discussions with Huang, that Nvidia “has the potential to become a $10 trillion stock.”
Moreover, in June of this year, prior to the 10-for-1 NVDA stock split, Beth Kindig, CEO of I/O Fund, envisaged Nvidia reaching a $10 trillion market cap by 2030, citing rapid advancements in AI chip development, a robust economic barrier via Compute Unified Device Architecture (CUDA), and other segments of the AI domain.
The outlook for Nvidia shares remains somewhat ambiguous presently, and only time will elucidate whether the stock market will interpret the recent positive tides in the Nvidia ecosystem as optimistic and reflect this in the NVDA stock prices.
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