Background and Triggers of the Price Increase
Nvidia’s stock experienced a significant rise of over three percent on Tuesday morning after CEO Jensen Huang signaled the possibility of resuming sales of H20 graphics processors to Chinese companies. This development follows an assurance from the US government under President Trump that Nvidia would be allowed to export certain AI (Artificial Intelligence) graphics processors back to China – particularly the H20 chip, which was specifically developed for the Chinese market with reduced performance.
So far, the company has estimated a loss of about 4.5 billion US dollars in revenue due to export restrictions. The relaxation of these restrictions now allows Nvidia to strengthen its market position in China and further push local competitors back.
Current Price Development and Technical Analysis
- New Record High: A significant price jump to over 172.50 US dollars is anticipated in pre-market trading – a new all-time high for the stock.
- Technical Target: After breaking above the previous high of 152.89 US dollars, the next target is set at the 138.2% Fibonacci extension retracement at 178.21 US dollars. The upward momentum remains intact; should there be a short-term pullback (below 160 US dollars), this could be seen as a buying opportunity.
- Long-term Trend: The stock has been in rally mode for months and already reached a new all-time high of 160.98 US dollars on July 9. The stock is also performing strongly in euros: on July 11, a six-month high of 141.26 euros was recorded.
Analyst Assessments and Fundamental Data
- Recommendations: Out of a total of 63 analysts, currently twelve recommend “Buy” and even 43 “Strong Buy”. Only one advises selling (“Strong Sell”), and seven recommend holding.
- Price Target: The average analyst target for the next twelve to eighteen months is approximately …