Meanwhile, trading volume for Nvidia has been lighter and that shows that big institutions like mutual funds have not been trading the stock heavily lately. The best gains are made when you buy stocks that funds are also buying.
If you look back at Nvidia’s stock chart, you can see the stock had been slipping in and out of a buy zone since October. Ideally, stocks do not move sideways but rather rise after breaking out of bases.
Last week, shares came under pressure after President-elect Donald Trump said he plans big tariffs on goods from China, Mexico and Canada.
But Bernstein Research analyst Stacy Rasgon noted that “raw semiconductor” imports from these countries were tiny and would not hurt Nvidia. The analyst did say the tariff raises some concerns that there may be more broad-based action that could hurt the semiconductor industry and even leaders like Nvidia.
Mizuho analyst Jordan Klein noted that the “restrictions seem in line or less severe than anticipated.” Piper Sandler analysts also stated that there were fewer entities on the restriction list than expected.
In November, analysts at Piper Sandler projected a 20% upside for the stock and raised their price target to 175 from 140. Nvidia is positioned to gain most from the increase in the total AI accelerator market, which Piper Sandler sees at $70 billion in 2025.
Content retrieved from: https://www.investors.com/research/nvda-stock-is-nvidia-a-buy-2/.
