Nvidia Rides AI Wave: Stock Jumps 4.1%

During the last five days, the share price of Nvidia (NASDAQ: NVDA) was up by 4.1% at the end of the trading day, hitting its highest point since excitement about its new Blackwell project started to spread. Analysts of Wall Street raised their forecasts for the AI leader after a good report came from Nvidia’s ongoing artificial intelligence (AI) summit, which truly won the hearts of investors.

A key contributory factor to the stock’s continued growth was the fact that Nvidia and Foxconn are working together to create Taiwan’s largest supercomputer, which will be powered by the Blackwell module. In addition, Foxconn will build a factory of massive proportions in Mexico to bundle Nvidia’s GB200 Superchips. The latter will also lead to the increase of the company’s position in the global semiconductor industry.

Meanwhile, the mass production of the semiconductor sector is also experiencing a boom. JPMorgan (JPM) drew on the most recent statistical data from the World Semiconductor Trade Statistics (WSTS) to state an industry-wide sales growth of 28% year-over-year in August. That means the demand was robust throughout the board of the industry.

Nvidia’s long-term investment in AI technology has always been reflected in the success it enjoys and the establishment of a competitive advantage. The company’s focus on software is vividly projected through the AI summit program it conducts, pointing towards the ambitious desire to do more than be a chip manufacturer. The fact that the company implemented this new business approach in parallel with its hardware leadership furthered enhanced Nvidia’s position in the AI market.

Nvidia Stock Chart Analysis

Analysing NVIDIA’s stock performance (NASDAQ: NVDA) over the past few sessions, we can observe some exciting movements. The stock experienced robust growth from $126 to a maximum of $133.28 during the evening of October 6, which later climbed to a high of $133.28 on October 7. Besides, the trading volume increased significantly, indicating that the buyers’ interest increased, and they entered the market.

Since the stock hit that peak, we saw some reduction of the stock price, characterized by the alternation of red and green candles. The implication of it is that maybe one investor has earned the money, but the other is still in doubt. According to the information released on October 9, the stock is staying in the price range of $132.94, thus, showing a loss of 0.22%.

Moreover, we can see a pick-up in volume towards the end of the chart again, and this points to the fact that momentum is building for a potential move. This could be the result of the increase in the global market, news affecting the company or just the more active dominating sector, but we are experiencing the same thing. $130 has proved that it is a supportive value while the market is still hovering at around $134.

There was a slight glitch in NVIDIA’s stock, nonetheless, we noticed a rise in the overall trend. It is important to remember that the vulnerability of support and whether or not the stock will fall should be a cause for concern. 

Stay alert to avoid missing any information, and make sure that you keep track of any information or changes!

SOXL Stock Chart Analysis

Today, the share of the Direxion Daily Semiconductor Bull 3x (SOXL) decreased by a very small margin, or 0.37%, to $37.44. SOXL has been range-bound trading methodically right between $37.37 and $37.74 with a little dose of volatility. At the beginning of this week, the stock was at its lowest at $35.40, but just like other stocks, it has partially recovered and is currently consolidating at the same time.

SOXL’s trading volume is robust; more than 1 million shares have changed hands up to now. This shows a high level of interest in SOXL, so many players are waiting to see if there is a breakout. At times, the semiconductor industry might meet broader macroeconomic issues, yet its long-term outlook will bring a more cautious note of optimism.

In the short term, we’re monitoring important technical levels. The $38 mark is the next hurdle that the bulls need to clear. On the other hand, downside support is already building up around the $36 area. If SOXL breaches these levels, we might encounter a more substantial price movement. The stock is in a standstill mode, awaiting the next big news that will disrupt the market.