Nvidia is on the brink of surpassing Amazon in terms of stock market value.

FUNDAMENTAL OVERVIEW:

Wall Street’s excitement over artificial intelligence positions Nvidia (NVDA) on the verge of surpassing Amazon’s market value for the first time in two decades. The AI chipmaker is also closely trailing behind Google-owner Alphabet.

A 40% surge in Nvidia during 2024 has lifted its market capitalization to $1.715 trillion as of mid-day trading on Wednesday. This puts Nvidia’s value just about 3% below Amazon’s $1.767 trillion and less than 6% below Alphabet’s $1.812 trillion, according to LSEG data.

Nvidia’s shares rose by 1.8% to $694.48 following an optimistic report from Morgan Stanley. The company is set to report its quarterly results on February 21.

Morgan Stanley increased its price target for Nvidia from $603 to $750, emphasizing the continued surge in demand for artificial intelligence (AI). Analyst Joseph Moore highlighted this trend in a client note.

Following its more than threefold increase in 2023, Nvidia has already secured the position as the fifth most valuable company in the U.S. stock market.

Nvidia has emerged as a prime beneficiary in the technology sector’s pursuit of integrating AI into their offerings, with significant investments from major players like Meta Platforms and other leading tech companies in Nvidia’s graphics processors.

NVIDIA TECHNICAL ANALYSIS DAILY CHART:

Technical Overview:

Nvidia is trading within a up channel.

Nvidia is positioned above all the Moving Averages (SMA).

The Relative Strength Index (RSI) is in Buying zone, while the Stochastic oscillator suggests Positive trend.

Immediate Resistance level: 706.13

Immediate support level: 680.71

HOW TO TRADE NVIDIA

Nvidia is maintaining an upward trajectory with a higher high structure. Currently, it has temporarily paused its upward movement and is in a consolidation phase. Initiating a buy on any potential pullback is advisable at this point.

TRADE SUGGESTION- LIMIT BUY– 666.41, TAKE PROFIT AT- 705.86, SL AT- 643.10.