Nvidia's GTC 2024: Semiconductor Stock Rides The AI Wave

Nvidia Corp‘s NVDA stock is trading higher on Monday, March 18 as investors remain optimistic about the company’s much-awaited GTC 2024 event.

Ahead of the event, investors are looking forward to CEO Jensen Huang‘s keynote and what the company’s next artificial intelligence (AI) chip, the successor to its H100 GPU, will be.

There’s also the possibility of a partnership with Alphabet, Inc. GOOGL GOOG and Apple, Inc. AAPL, which is also boosting sentiment toward the stock.

Also Read: Nvidia Supplier Taiwan Semi Rides AI Wave to Record Rally, Sidestepping Geopolitical Concerns

Let’s take a look at the stock’s technical setup before the event.

Technical Setup

Per the technical analysis of Nvidia’s stock, the current trend appears moderately bullish, although there is slight selling pressure.

The 50-day simple moving average (SMA) for Nvidia stock at $709.00 (yellow line in chart above) and the 200-day SMA at $514.51 (blue line above), both suggest buying opportunities.

When considering the exponential moving averages (EMA), the 20-day EMA also signals a buy. The 50-day EMA aligns with the 50-day SMA, indicating a buy, while the 200-day EMA reinforces the buy signal.

Additionally, the Moving Average Convergence Divergence (MACD) indicator is positive, supporting a buy recommendation. However, the Relative Strength Index (RSI) at 65.56 (in an earlier chart) can be seen flirting with the overbought level.

Nevertheless, the Bollinger Bands indicate buying opportunities both in the short term (25-day) and long term (100-day).

Overall, despite the overbought conditions indicated by the RSI, the technical indicators suggest a favorable outlook for Nvidia stock.

Consensus analyst rating for Nvidia stock also indicates a Buy at current levels.

NVDA Stock Price Action: Nvdia stock was trading at $903.65 at the time of publication.

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