Nvidia stock is breaking out, says Investing.com’s Fairlead Strategies

AI giant NVIDIA (NASDAQ:) stock is breaking out and could be heading toward its June high of about $141 per share, according to technical analyst Katie Stockton of Fairlead Strategies.

“Heavyweight Nvidia (NVDA) confirmed a triangle breakout yesterday, supporting near-term continuation of its June high (~$141),” Stockton said. “While SPX and NDX have seen a short-term weakening of momentum, NVDA’s breakout is likely to prevent a major decline in the major indices, which is one of the reasons we maintain a short-term neutral bias on U.S. stocks in today’s Fairlead Tactics .” .”

NVIDIA stock has risen for six straight sessions, including today’s modest 0.12% gain. The stock is up more than 170% since the start of the year.

Analysts are increasingly optimistic about the company’s Blackwell product, which CEO Jensen Huang says is seeing “insane” demand.

“Blackwell is in full production, Blackwell is as planned and demand for Blackwell is insane,” Huang said on CNBC last week. “Everyone wants the most and everyone wants to be first.”

Today, Taiwan Semiconductor Manufacturing (NYSE:) reported that September sales beat estimates due to solid demand for AI chips. TSM said September 2024 revenue was approximately NT$251.87 billion, up 0.4 percent from August 2024 and up 39.6 percent from September 2023. TSM makes NVIDIA’s AI chip .

On Tuesday, analysts at Morgan Stanley said Blackwell’s 1Q25 manufacturing sales could surpass Hopper’s. Blackwell chips command a price premium, with B200 chips being 60-70% more expensive than H200 chips, meaning Blackwell will overtake Hopper in sales in the coming quarter.