Nvidia's stock is breaking out, Fairlead Strategies says

AI behemoth NVIDIA's (NASDAQ:NVDA) stock is breaking out and could be heading to its June high of around $141 per share, according to technical analyst Katie Stockton of Fairlead Strategies.

"Heavyweight Nvidia (NVDA) confirmed a triangle breakout yesterday, supporting near-term follow-through toward its June high (~$141)," Stockton said. "While the SPX and NDX have seen short-term momentum weaken, NVDA’s breakout is likely to prevent a major pullback in the major indices, which is part of the reason why we keep a short-term neutral bias for U.S. equities in today's Fairlead Tactics."

NVIDIA stock has been up six straight sessions, including today's fractional gain of 0.12%. The stock is up more than 170% year-to-date.

Analysts have been increasingly bullish on the company's Blackwell product, which the CEO Jensen Huang said is seeing "insane" demand.

"Blackwell is in full production, Blackwell is as planned, and demand for Blackwell is insane," Huang said on CNBC's last week. "Everyone wants the most, and everyone wants to be first."

Today, Taiwan Semiconductor Manufacturing (NYSE:TSM) reported that September sales beat estimates on solid AI chip demand.  TSM said revenue for September 2024 was approximately NT$251.87 billion, an increase of 0.4 percent from August 2024 and an increase of 39.6 percent from September 2023.  TSM makes NVIDIA's AI chip.

On Tuesday, analysts at Morgan Stanley (NYSE:MS) said Blackwell production revenue in 1Q25 may surpass Hopper. Blackwell chips command a price premium, with B200 chips priced 60-70% higher than H200, positioning Blackwell revenue to overtake Hopper in the upcoming quarter.