Nvidia’s (NVDA) stock price reached a record high on Monday, February 5th, 2024, fueled by optimism from Goldman Sachs analysts who bullishly revised their forecasts on the back of the booming AI industry.

Goldman Sachs Raises NVDA Price Target

Goldman Sachs analysts boosted their price target for NVDA to $800, representing a 21% upside from its current price of $661.41. This revision primarily stems from their belief in AI’s massive growth potential, particularly in areas like server demand and chip supply improvement.

Market Reaction

The market responded positively to this news, with NVDA shares surging over 4% in pre-market trading. This positive momentum pushed the stock price to a record high of $689.21, adding roughly $70 billion to the company’s market capitalization.

NVDA/USD Technical Analysis

For traders, the question remains: can NVDA sustain this rally? Let’s take a look at some key technical indicators:

• Upward Trend: The overall trend for NVDA has been bullish, with the stock price steadily climbing over the past year. This trend suggests continued momentum, but with any upward trend, corrections are inevitable.
• RSI: The Relative Strength Index (RSI) currently sits at 72, indicating that the stock might be slightly overbought in the short term. A potential pullback could bring the RSI closer to the 50 mark, which is considered neutral territory.
• Resistance Levels: The immediate resistance level lies around $700, followed by $750. Breaking through these levels could signal further bullishness, while a rejection could lead to a slight dip.
• Support Levels: $650 and $600 represent key support levels. If the stock price falls below these levels, it could indicate a deeper correction.

Should You Buy Nvidia (NVDA)?

While the outlook for NVDA seems promising thanks to AI tailwinds and positive analyst revisions, investors and traders should remain cautious. The stock’s current valuation is high, and the RSI suggests a potential short-term pullback. Technical analysis points to key resistance and support levels that could dictate the stock’s next move.