Economy

Nvidia stock has 25% upside

Nvidia’s stock has surged to unprecedented heights, and Melius Research suggests the momentum isn’t over. A recent note by Ben Reitzes, managing director at Melius, raised Nvidia’s price target to $185, suggesting a potential 26% increase from its current level. Reitzes likens Nvidia’s trajectory to Apple’s groundbreaking iPhone launch, suggesting that selling now could be a mistake, similar to exiting Apple stock after its initial iPhone release.

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Reitzes believes Nvidia’s next-generation Blackwell GPU will mark a transformative point for the company, akin to a “watershed moment.” He notes that enthusiasm surrounding Nvidia’s product cycles today mirrors the hype around Apple’s iPhone launches over a decade ago, only on a much larger scale. “Giving up on Nvidia now, post-Hopper, would be like abandoning Apple at iPhone 1 or 2,” Reitzes emphasized, referring to Nvidia’s current-generation Hopper chip.

Nvidia’s ascent has been driven by the explosion of artificial intelligence applications, notably fueled by OpenAI’s release of ChatGPT in late 2022. Since then, Nvidia shares have skyrocketed by nearly 800%, propelling the company to a market cap of over $3.5 trillion, making it the largest in the world. Investors may want to hold on a bit longer as Nvidia’s Blackwell chip could further elevate the company’s already historic rise.

Nvidia Stock Chart Analysis

NVDA/USD 15-Minute Chart (Source: TradingView)

The 15-minute chart for Nvidia (NVDA) shows recent fluctuations, with the stock trading at around $146.41, down 0.33% for the session. The chart reveals a significant price range between approximately $135 and $149 over the past few days, indicating volatility within this period. The stock reached a high near $149 but failed to maintain that level, with prices now consolidating in the $146-$148 range.

Looking at the Relative Strength Index (RSI) at the bottom, we see it currently at 43.18, suggesting that the stock is neither overbought nor oversold at this point. The RSI has generally stayed below 50, hinting at weaker buying momentum in recent sessions but not dipping low enough to indicate a strong oversold condition.

The stock’s pullback from recent highs might attract traders seeking a lower entry point, especially if Nvidia’s price stabilizes near current support levels around $145. However, a break below $145 could signal further downside, possibly retesting support closer to $140. Alternatively, a move above $148 and the recent high near $149 could trigger renewed bullish interest.

Given Nvidia’s recent rally and robust long-term outlook, short-term traders might watch these support and resistance levels closely, while longer-term investors may view any dips as buying opportunities.

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