NVIDIA’s stock (NVDA) has recently experienced significant volatility, primarily due to developments in the artificial intelligence (AI) sector. A notable factor was the emergence of DeepSeek, a Chinese AI startup, which announced a major breakthrough that could potentially disrupt the AI landscape. This announcement led to a 17% decline in NVIDIA’s stock, erasing nearly $600 billion in market value.
As of January 29, 2025, NVDA is trading at approximately $128.99. Technical analysis indicates that the stock is currently situated between a support level at $134 and a resistance level at $149. A decisive move beyond either of these levels could signal the stock’s future direction.
Given the recent price movements, it’s essential to monitor key support and resistance levels. The stock has support around $102, $96, and $76, with significant recovery resistance near $130.
Despite the recent downturn, some industry experts believe that DeepSeek’s advancements could ultimately benefit NVIDIA by accelerating AI adoption, thereby increasing demand for NVIDIA’s chips.
Retail investors have shown confidence in NVIDIA’s long-term prospects, purchasing a record amount of NVDA stock during the recent decline.
In summary, while NVIDIA faces challenges due to emerging competition in the AI sector, its foundational role in AI hardware positions it well for future growth. Investors should closely monitor technical indicators and industry developments to make informed decisions.
Personally I would be adding more into NVDA as it inly comprises about 8% of my portfolio.
Modify on 2025-01-29 14:37
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