Nvidia's (NVDA) Path to $240: A Deep Dive into Market Potential

Nvidia's Position in Today's Market

Although Nvidia's (NASDAQ: NVDA) share price is showing weakness in tandem with the general technology sector, a trading expert has pointed out that the equity, based on its technical setup, is flashing promising growth potential. As of the last day of October, Nvidia closed at $132.76, plunging almost 5% in a single day. These losses came after NVDA recently hit an all-time high near the $145 mark.

Notably, the chipmaker’s venture into artificial intelligence has led NVDA to record 175% growth in 2024. The share price strengthened before the market opening on November 1, gaining 1.60% in pre-market trading.

Projections for NVDA Stock Price

Nvidia has bounced back from a strategic buy point identified in early August, aligning with the higher lows trendline within a two-year rising channel that started in October 2022, according to an analysis shared in TradingView post on October 31.

TradingShot noted that Nvidia's recent price action shows that significant bullish momentum remains intact as long as it holds support at the 200-day moving average. In this case, with Nvidia trading below the midpoint of the upward channel, the potential for further gains appears substantial. TradingShot's projections include a short-term target of $190, supported by Nvidia's strength above the 1D MA200.

A longer-term outlook anticipates NVDA reaching the $240 level, corresponding with the 3.0 Fibonacci extension, projected around early 2025.

Market Factors and Analyst Ratings

While technical indicators suggest more upside in the long term, the equity has faced pressure from the sell-off in the AI space and the broader technology sector. Indeed, Advanced Micro Devices (NASDAQ: AMD) triggered part of this recent sell-off after the company’s AI chip focus disappointed investors.

Despite short-term challenges, another analysis suggested that Nvidia's share price could trade as high as $171 by Christmas Day, with analysts backing a potential target of $200.

Bank of America semiconductor analyst Vivek Arya described Nvidia as a “generational opportunity” and recently raised the stock's price target from $165 to $190.