Ride Nvidia’s AI Wave: Long-Term Promise Amid Short-Term Risks

- Key Insights: Nvidia faces near-term bearish pressures due to U.S.–China trade
tensions, AI chip export restrictions, and tariff challenges. However, it
remains the undisputed leader in AI infrastructure and GPU innovation,
positioning it for long-term growth. Entry points near critical support
levels may offer opportunities for patient investors to capitalize on its
leadership in AI-driven industries. A bullish reversal requires a breakout
above $104.75.

- Price Targets:
*Next Week Targets (Long Position)*
- T1: $103.25
- T2: $108.10
*Stop Levels*
- S1: $98.50
- S2: $94.75

- Recent Performance: Nvidia's stock has struggled within a bearish channel,
underperforming tech-heavy indices such as the Nasdaq, which have been
weighed down by sector-wide semiconductor weakness. The stock’s lower highs
and lower lows reinforce its short-term downside trajectory, amplified by
regulatory uncertainties and weakened demand from China. These factors have
contributed to gamma exposure-driven speculative price movements around the
$100 zone.

- Expert Analysis: Analysts highlight Nvidia's dominant position despite export
restrictions that may cost up to $5.5 billion. Nvidia continues to drive AI
innovation through its Kyber compute architecture and Dynamo software,
targeting industries like automotive and pharmaceuticals. While bearish
sentiment persists short term, long-term growth prospects remain robust due
to strong U.S. semiconductor policy support and widespread demand for AI
applications. Nvidia’s strategic positioning makes it a desirable asset for
long-term investors despite current macroeconomic risks.

- News Impact: Geopolitical tensions, specifically the Biden administration's
restrictions on advanced AI chip exports to China, remain pivotal for
Nvidia’s stock trajectory. These restrictions are expected to impact
Nvidia’s earnings through 2024. Additionally, escalating tariffs are adding
inflationary pressures, though efforts to negotiate market access highlight
Nvidia’s proactive approach to mitigating restrictions. Meanwhile, Nvidia’s
breakthroughs in AI technology continue to drive optimism for future growth
in multiple industries. Investors should remain vigilant as any easing of
trade restrictions could act as a significant upside catalyst.