NVDA
Nvidia (NVDA) Stock Drops Amid Investigation in ChinaNvidia (NVDA) Stock Drops Amid Investigation in China
On 21 November, our analysis of Nvidia (NVDA) stock price revealed:
→ The continuation of a long-term upward channel (illustrated in blue).
→ The significance of resistance at the psychological level of $150.
Since then, NVDA’s stock price has failed to surpass the highlighted resistance level, despite stock indices reaching record highs, indicating Nvidia's relative underperformance compared to the broader market. It seems the AI-driven rally may be losing steam.
Investor concerns were heightened yesterday by news that China has launched an antitrust investigation into Nvidia, suspecting the company of violating the country’s competition laws. In response, Nvidia stated that it complies with its obligations wherever it operates and is ready to cooperate with regulators.
Following this announcement, NVDA’s stock price experienced a modest decline, further reinforcing a bearish outlook.
Technical analysis of Nvidia (NVDA) stock chart indicates that if the price fluctuations since September are viewed as forming a channel with curved lines (drawn in black), it becomes evident (as marked by an arrow) that the lower line has shifted its role from support to resistance — a bearish signal.
In this context, the situation appears balanced, with buyers and sellers consolidating NVDA's price within a range of $132 to $150. The eventual breakout from this range could result in a significant swing—but in which direction?
According to TipRanks, analysts remain optimistic:
→ 37 out of 40 analysts recommend buying NVDA stock.
→ The average 12-month price target for NVDA is $176.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Don't Miss the Second Wave of AI Opportunities!Are you still regretting missing out on NVIDIA's 10x growth? This time, you may not need to worry. The second wave of AI is forming, and this time, the opportunities are not limited to hardware, but are fully penetrating enterprise-level applications. For investors, this is an unparalleled new window of opportunity.
A Look into the Future: The Development Patterns of AI
Reviewing history, from the power revolution a century ago to the internet revolution in the 1990s, we see similar development patterns. Each revolutionary technology wave will go through three key stages. Let's take the internet revolution as an example:
Infrastructure Construction Stage
In the late 1980s and early 1990s, the internet was just emerging, and its applications were still very limited. The companies that benefited most were those in the foundation layer, such as Cisco and Intel.
The first stage of AI development was similar, with chip giants like NVIDIA driving the construction of AI infrastructure.
2. B2B Application Rise Stage
In the mid-1990s, the internet gradually entered the enterprise-level application field, with CRM and supply chain management software emerging, improving corporate production efficiency.
AI is currently entering this stage, with companies optimizing operational processes using AI technology to achieve cost reduction and efficiency improvement.
3. C2C Consumer-Level Application Popularization Stage
In the late 1990s, various C2C killer applications began to emerge, such as Amazon, PayPal, and Yahoo!, which became familiar companies.
Now that the first wave has stabilized, the question is: when will the second wave arrive in B2B applications?
Many ordinary people have a feeling that AI applications are limited to chatbots like ChatGPT, and that true killer applications have not yet arrived or will take a long time to develop.
As a result, some people believe that AI investment is still too early, and that what's being blown up now is just a bubble.
Indeed, we can see that C2C applications are still in development and will take a long time to mature. However, in B2B applications, AI has already been widely deployed and has shown significant effects in certain specific fields. It's just that ordinary people haven't yet felt it.
As investors, we must be more sensitive than ordinary people because corporate changes will be critical to the second wave of AI.
The Second Wave of AI: The Golden Era of Enterprise-Level Applications
The following graph is a summary of the top-ranked industries in which AI-driven companies are most likely to benefit.
As for software companies like ETFIGV, we can see from their financial reports that AI is driving significant improvements in corporate operating efficiency.
The following graphs show the gross margin and EBITDA margin of three typical software companies: Shopify, Salesforce, and ServiceNow.
Explaination:
Gross margin reflects the main product profit of software companies, while EBITDA margin reflects the company's operating profit after deducting depreciation and interest.
In other words, it represents a company's ability to generate profits from limited resources.
We can see that these three companies have seen significant improvements in their EBITDA margins over the past two quarters while maintaining stable gross margins.
Data does not lie; this may indicate that AI is already seeing effects in enterprise-level applications.
• Shopify: By optimizing internal processes using AI, it maintained stable gross margins while improving EBITDA margins and directly driving stock price growth by 30% after reporting earnings.
• Salesforce: It launched its "INS Instant" AI tool to automate 370,000 tasks, saving 50,000 hours of labor time and significantly improving employee efficiency.
• ServiceNow: Its AI accelerated data extraction speed by 53%, work flow efficiency by 27 times, and RPO growth by 26%, providing more powerful workflow optimization services for enterprises.
These data clearly show that AI is not just a buzzword but brings actual efficiency and profitability improvements to enterprises.
Snowflake: A Breakthrough in Enterprise Data Analysis
Snowflake's case is more representative. This data analysis platform focuses on providing intelligent operational support to enterprises using AI technology.
This quarter's RPO increased from $52 billion to $57 billion, reflecting enterprise trust in its AI capabilities. CEO's "All-in-AI" strategy not only drives data mining efficiency but also drove its stock price up by 30% after reporting earnings.
Insurance Industry Digital Transformation: AIFU and BGM's Strategic Cooperation
The insurance industry is an important target area for AI transformation due to its information-intensive nature. It is at the forefront of digital transformation, especially with AI technology driving it forward.
AIFU's smart future has already achieved insurance industry transformation through its core product "Duxiao" platform.
"Duxiao" is an AI-driven insurance platform developed jointly by AIFU and Baidu. By combining big data and AI technology, it can provide personalized insurance solutions for customers.
The platform analyzes customer health insurance needs, education planning, and wealth management needs in depth and generates highly customized insurance configuration plans. This has significantly improved agent productivity and accuracy while reducing operating costs.
As of December 2023, AIFU's revenue reached $31.98 billion, with a year-on-year growth rate of 14.98%. Net profit was $2.89 billion with a year-on-year growth rate of 237.25%.
AIFU's PE ratio (TTM) is only 3.5 times. In comparison to industry giants such as Prudential (PUK) and AXA (AXAHY), which have PE ratios above 12 times or even higher than AIFU.
AIFU's strategic acquisition of two subsidiaries by BGM on Friday includes core technology assets such as "Duxiao" platform. BGM is a global pharmaceutical and chemical company that has actively promoted its AI strategy in recent years.
By integrating AI with data analysis, BGM is reshaping its business model towards a more intelligent future.
How to Seize Opportunities in the Second Wave of AI?
What kind of companies will ultimately succeed? I can share with you my thoughts on what kind of companies need to possess these characteristics:
Strong Competitive Moat: Companies that can continuously strengthen their competitive barriers through AI.
Data Monopoly Advantage: Companies that build models using high-quality private data rather than public data.
Flexible Business Model: SaaS platforms with pay-as-you-go pricing models have more scalability and profitability potential.
Strong Execution Ability: Agile and decisive management teams that can quickly deploy technology.
Conclusion:
The future belongs to those who dare to layout!
An Update For MY Followers Hey Everyone
Wanted to quickly update everyone as I have been MIA the last two weeks working on a really cool project to create even more value for everyone. I will be back in action tomorrow, so if you have any assets you want me to analyze let me know and I will do that for you. Secondly if you are wanting to increase your wellness and your trading send me a DM.
Hope everyone has a awesome day and I will see you tomorrow
Kris / Mindbloome Exchange
Trade What You See
NVDA Elliott Wave Analysis: Potential Bullish Reversal ZonesThis post analyzes NVIDIA Corporation (NVDA) using Elliott Wave principles on the 4-hour chart.
Key highlights include:
1. A corrective ABC pattern nearing completion, with Wave (4) projected in the blue target zone between $117.21 (1.382 Fib extension) and $125.36 (Wave 1 level).
2. Potential bullish reversal expected within this zone, aligning with a confluence of trendline support.
3. Upside targets for the next impulsive wave: $146.81 and $167.27, marking Fibonacci resistance levels.
4. Stop-loss level strategically set at $112.67 to manage risk effectively.
This setup anticipates a continuation of the bullish trend upon confirmation of the reversal. Trade cautiously and follow your strategy!
Thinks againCould it be that this stock will drop further? Today, a report came out stating that China has launched an antitrust investigation. However, it's clear that this is a positive step to maintain the technological leadership that the U.S. requires from its manufacturers. Therefore, this news is not a catalyst for a decline. What we can observe is a well-formed symmetrical triangle(B) at the apex of a megaphone pattern(A), similar to the one Bitcoin created a few months ago to reach 100K.
NVDA - finding an Exit on LongsIn this short piece, I present some visuals of my ideas on NASDAQ:NVDA targets.
If the chart patterns play well then my intention is to exit at around $183 to $193 and then catch the wave (4) low ideally at $146 , for the final push up in this sequence in to $210 or slightly higher for a final exit.
Viewed from the perspective of a weekly or monthly chart - NASDAQ:NVDA doesn't look complete at those higher levels, however, I suspect that the end in to the wave (5) around $210 will complete a multitude of larger wave degrees, thus start a much larger degree (wave 4) correction from that point.
**NVDA may be a strong barometer for the market peak on an intermediate scale. I will certainly consider this strongly.
$NFLX Farewell , I bid the adeiu It was a nice ride I'm sure. But it's time to go back down now. RSI hitting resistance on the monthly. Daily exhausted with 7 green days in a row , with a doji to top it off. I would love a gap up and touch of the highs, then flush!! 3 days of red incoming. Monthlies can pay well 💬
NVDIA Channel Up ready to explode in 2025 for a $350 target.NVIDIA corporation (NVDA) has started the week on a bullish 1W candle, following last week's reversal pattern. Technically that reversal is being formed exactly at the bottom of the long-term Channel Up pattern that started on the October 10 2022 market bottom.
This 2-year pattern is technically very similar to the Channel Up that started on the weekly bottom of December 24 2018. The similarities between the two patterns are striking. As you can see both started after an oversold 1W RSI (<30.00) touch, which then formed Higher Lows, making the price rebound on the 1W MA200 (orange trend-line). Then, using the 1W MA50 (blue trend-line) as the Support, the 2019 - 2021 Channel Up expanded all the way to the 6.0 Fibonacci extension, until the eventual break below the 1W MA50 and the 2022 Inflation Crisis.
Observe also how similar their 1W RSI sequences are. Right now it appears that we are after a technical pull-back similar to May 10 2021. The 1W MA50 is supporting and the 1W RSI (which has already made a Double Bottom rebound (green circles)) is bouncing off its MA (yellow trend-line) and looking for a break-out above the (dotted) Channel Down.
We have already set two Targets ($190 and $240) for on NVDIA on our previous analysis, but this time we move a little further, making a projection for the end of this Cycle. And the final Target is $350, exactly on the 6.0 Fibonacci extension, the level that formed the November 22 2021 Top.
-------------------------------------------------------------------------------
** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. **
-------------------------------------------------------------------------------
💸💸💸💸💸💸
👇 👇 👇 👇 👇 👇
Direxion Semiconductor 3x Bull | SOXL | Long at $30.00So many semiconductor companies... which one to choose? Enter AMEX:SOXL - not for the faint of heart. Losses and gains triple compared to most semiconductor ETFs, so stay away if high-risk plays aren't your thing. The top three holdings are NASDAQ:AMD , NASDAQ:AVGO , and NASDAQ:NVDA - two of which are at all-time highs...
I wouldn't be shocked if AMEX:SOXL enters the low $20's to test the base of my historical simple moving average area, but I don't think we are done hearing about AI and the semi demand. There are large gaps to fill above and below the current price and we are at the 50/50 stage (i.e. historical simple moving average zone) for a price move up or down.
My bet is up, especially with the new presidential administration. If politicians start dumping semis, I'm out. Thus, at $30.00 AMEX:SOXL is in a personal buy zone.
Target #1 = $35
Target #2 = $40
Target #3 = $50
Target #4 = $60
NVDA to $180 or $190 in 35 days ?NVDA is re-entering an upward channel that began on August 5, 2024, when it hit a low of $90.69 following its 10:1 stock split. This movement coincides with the stock surpassing the key $140.76 high recorded on June 20, 2024, which we identify as the end of Wave 3 in its major bullish cycle .
After the Wave 4 correction , which took the price from $140.76 down to a low of $90.69 on August 5, 2024, NVDA appears to have started a Wave 5 . This wave has the potential to drive the price to $180.00, or even $190.00, possibly by Friday, January 17, 2025 , the last trading session before the inauguration of President Donald Trump.
Our Perspective on NVDA's Major Bullish Cycle
We divide this cycle into the following stages, based on Elliott Wave theory:
Wave 1
Period: May 13, 2016, to November 22, 2021
Price movement: from $1 to $34.65 (+3365%)
Wave 2
Period: November 22, 2021, to October 13, 2022
Price movement: from $34.65 to $10.81 (-68%)
Wave 3
Period: October 13, 2022, to June 20, 2024
Price movement: from $10.81 to $140.76 (+1202%)
Wave 4
Period: June 20, 2024, to August 5, 2024
Price movement: from $140.76 to $90.69 (-36%)
Wave 5 (in progress)
Estimated period: August 5, 2024, to January 17, 2025
Projected price movement: from $90.69 to $180.00 (channel midpoint) or $190.00 (channel top) (+100% projected).
Key Levels to Monitor
$180 as the channel midpoint , and $190 as the upper limit by January 17, 2025.
If NVDA exits the upward channel and breaks below $131, we will exit our position in the stock .
Our opinion is for educational purposes only and should not be considered a recommendation to buy. Before making any investment, consult with your financial advisor.
SMCI, the worst is likely behind usSMCI has crashed from this years highs, a good 80%.
To me it sounds like the worst has happened. And while we may see some positivity this EOY that can help us reach new ATHs, we must remain aware of the risk the broad economy poses.
Target is 130+ short term, with one more 50%+ drop coming right after.
I would make sure I have the funds ready to scoop up shares if such a scenario happens. As the second dip doesn't look as bad as the first one.
After that SMCI will resume its lifetime bullish climb, and keep on going for as long as the bull market lasts.