According to the latest news from Wall Street, Nvidia’s stock is trading at $114.50, highlighting a surge of 2.6%. The 14-day Relative Strength Index (RSI) has also climbed to 56.5, and the Moving Average Convergence Divergence (MACD) remains in positive territory at 0.49. These trading benchmarks highlight that Nvidia is regaining its market strength after a severe blow from Trump tariffs. However, the question is, will the semiconductor company sustain this growth with the AI boom, or is it a short-term gain?
Nvidia has low sustainability chances
As per the year-to-date analysis, Nvidia shares are down approximately 20%. This downward trend is stimulated by Trump’s tariffs on imported Chinese goods. Moreover, the Us restriction on H20 chip exports to China has also dented the sales of Nvidia. These factors are not going anywhere in the near future. Therefore, the chances of Nvidia sustaining growth are low.
AI Boom and Growing Trend
One of the greatest incentives for Nvidia’s growth is the AI boom that needs semiconductor chips for data centres. Although Nvidia is a major supplier of these chips to data centres, the competition is also rising. The claim of DeepSeek for developing the chatbot at a lower cost than OpenAI has also raised skepticism among AI companies for using Nvidia chips. These factors have already impacted Nvidia in recent months, and there are high chances that the concerns will loom large.
How many chances of Nvidia’s Upward Trend
Analysts believe that for the short term, Nvidia stocks will rise due to the stability brought by Trump’s temporary pause on semiconductors and electronic devices. However, there is are high chance that Nvidia trends will show volatility due to rising competition and challenges faced by Nvidia for H20 chip export.
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