In the case of Nvidia, the stock has remained the talking point in recent times as it hits new all-time highs on the back of sky-rocketed demand in artificial intelligence chips and a marked improvement in the ties between the US and China. The stock price of $164.10 indicates both high technical drive and hope for the future of the company within the AI sphere. This latest run-up is simply the reflection and a tale of how Nvidia has turned into the pivot of a swiftly evolving high-tech environment.
What is different about Nvidia today is that it sits in the center of the AI revolution. Demand for its high-performance chips, in particular, the H100 and forthcoming Blackwell GPUs, is much higher than the supply. This high demand does not apply to a single region/sector. Enterprise software and cloud companies around the world are scrambling to license Nvidia to run the next generation of AI models. Its ambitions to venture into new markets, such as the recent partnership in Saudi Arabia, denote its intention to diversify its growth.
In geopolitical terms, there is an unexpected improvement, as US-China tensions are easing up. Although there are still many restrictions, the new tone of semiconductor corporations offers opportunities for Nvidia, particularly in data centres and edge computing. The twin benefit of this geopolitical blows and a sound mimic makes it likely that Nvidia will have a shot at higher resistance levels soon, and that it may reach resistance levels as high as 205 in case of sustained momentum. The recent milestone of the company achieving a market cap of over $4 trillion highlights its leadership status and how investors are confident in its future.
