The posterchild of the AI revolution, Nvidia, continues to smash record high after record high, and push the boundaries of equity valuations, by officially becoming the first public company to reach a $4 trillion dollar market capitalization.
The AI-chipmaker juggernaut has proven to be the most reliable paly in institutional investors’ portfolios since the start of its impressive rally back in January of 2024, when the prospects of AI implementation went mainstream. This time around however, retail investors picked up the pace and jumped on the AI-bandwagon as well, being attracted by intrinsic value and optimistic outlooks, but also from fears of missing out, ludicrous potential gains.
Strong investor interest in Nvidia and the uninterrupted extension of its rally into fresh record highs will without a shadow of a doubt create sympathy play rallies in other AI-related stocks and power up further the rise of the tech heavy Nasdaq 100.
Nonetheless, the asymmetrically bullish collective bias of the market towards the chipmaker could be a tell-a-tale sign of hubris, with some analysts flagging the possibility of more frequent mini- crash-like sessions due to the exuberant inclination of participants.
Technical Analysis
NVDA Chart – Nvidia extends its impressive rally into fresh record highs aided by strong momentum
Resistance: 165.00 (R1), 175.00 (R2), 185.00 (R3)
Support: 153.00 (S1), 140.00 (S2), 124.00 (S3)
