What next for Nvidia stock after hitting first higher high since its all-time high

The share price of semiconductor giant Nvidia (NASDAQ: NVDA) has formed a promising pattern likely to anchor news highs as the stock seeks to reclaim the $140 mark.

At the close of the last trading session, NVDA stock was valued at $137.01, reflecting daily losses of over 2%. However, on the weekly chart, the chipmaker has maintained a series of green sessions, up over 5%. 

On the other hand, the company’s venture into artificial intelligence (AI) has helped Nvidia’s share rally to 184% year-to-date.

NVDA stock forms a promising pattern 

After hitting a record of around $148, the share price entered a period of consolidation, marked by a series of lower highs and lower lows. 

However, the latest trading session brought promising development: Nvidia officially broke out of this pattern by achieving its first high since reaching the record high, according to analysis by charting platform TrendSpider shared in an X post on 28. 

This breakout marks a potential turning point for the stock and offers room for a sustained recovery that could propel it to the $150 resistance zone. 

Although Nvidia has faced bearish sentiment in the short term, the latest higher high could pave the way for further gains, with key levels at $140 and $145, especially if it sustains buying pressure as witnessed this year. 

To this end, according to Vanda Research, Nvidia surpassed Tesla (NASDAQ: TSLA) as the most purchased stock by retail investors in 2024. 

For the second year, Nvidia’s net purchases outpaced those of the S&P 500 Index ETF, and the net inflow almost doubled, totaling $29.8 billion—nearly nine times higher than in 2021.

What next for Nvidia stock price

Moving into the new year, several fundamentals are likely to propel Nvidia to new highs, provided the ongoing AI momentum is sustainable. In this case, the company’s groundbreaking Blackwell chips could be key to reaching new heights.

The product line aims to revolutionize large language model (LLM) processing efficiency, delivering up to 25 times lower costs and energy consumption than its Hopper platform. After initial delays and overheating issues, the product is already witnessing smooth production, with CEO Jensen Huang stating that demand is staggering.

In October 2024, Morgan Stanley reported that Nvidia’s Blackwell chips were sold out for the next 12 months. The company is projected to ship 60,000 to 70,000 Blackwell B200 server systems in 2025, priced at $2 million to $3 million each. This could generate $120 billion to $210 billion in revenue, with a midpoint estimate of $165 billion.

The projected revenue growth has prompted several Wall Street analysts to offer their outlook on the stock’s development. For instance, Phil Panaro of Boston Consulting Group highlighted that the company’s Q3 2024 earnings of $35 billion—exceeding its total 2023 revenue by $8 billion—showcased Nvidia’s unprecedented scale.

With 50% margins and a projected $140 billion annualized revenue, Panaro noted that achieving $800 per share by 2030 would require $600 billion in revenue, a target he believes Nvidia is likely to attain.

Nvidia stock headwinds 

Conversely, Nvidia faces several potential barriers to the stock’s growth. For instance, the Federal Reserve’s updated inflation forecast has fueled renewed concerns over a potential economic slowdown in 2025, which could dampen investor interest in the stock market. This, coupled with fears of a possible AI market overvaluation, could cause Nvidia to take a hit.

Additionally, with Donald Trump set to assume office for a second term, an accelerated trade war with China cannot be ruled out. As Nvidia is a top AI chip manufacturer, it could face significant challenges, especially with the possibility of a sustained AI arms race. Notably, Nvidia recorded a sharp drop below $140 after Chinese authorities launched an antitrust probe into the company.

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