Nvidia Resumes Uptrend, But Can It Reclaim ATH Ahead of Earnings?

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NVIDIA Corporation Noticias

Advanced Micro Devices Inc

Stocks Analysis by Investing.com (Günay Caymaz) covering: NVIDIA Corporation, Advanced Micro Devices Inc. Read Investing.com (Günay Caymaz)'s latest article on Investing.com

The chipmaker's sharp rebound has lifted the broader markets too.) shares experienced a dramatic plunge last month, but a subsequent rebound has seen the stock recover much of its losses.

However, other investors have increased their positions and bought the recent dip, indicating continued confidence in the company's long-term prospects. In response, China-based Huawei plans to launch a new AI chip in October that could rival Nvidia's offerings in the Chinese market, opening a new front in the AI sector.

The stock has reclaimed its short-term moving averages and is currently testing the $130 resistance level. A decisive break above this point could open the door to a rally towards the $140 - $170 range, based on Fibonacci extension levels. Should NVDA close above $140 this week, Fibonacci expansion levels suggest a potential rise to the $155-170 range. However, given the resistance in the $130-140 range, another wave of profit-taking could emerge if short-term overbought conditions develop.

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