The Nvidia stock resumed the bullish momentum today after opening with a gap higher, but returned back down to the 20 SMA as stock markets retreated slightly lower. The NVDA shares surged above $970 earlier this month but it gave back 14% of the value in the next two day, however moving averages have helped keep the bullish trend intact.

Nvidia Shares Chart H4 – The 20 SMA Continues to Support the Uptrend

NVDA shares surged to a peak of $923.85 today after opening with a bullish gap at the market open, driven by anticipation for Nvidia CEO Jensen Huang’s keynote speech at the company’s conference. However, the initial gains were short-lived, and the shares have since flattened out for the day. This price action suggests that sustaining further gains in the artificial intelligence (AI) sector may prove challenging.

In addition to Nvidia, the Supermicro stock price has also declined by around 9% today after experiencing a significant rise earlier. While some of this movement may be attributed to concerns about the Federal Reserve’s actions, profit-taking in top-performing stocks appears to be the primary driver.

Investors may be becoming increasingly cautious about the AI sector’s ability to deliver tangible benefits in the near term, because there have been many promises but the deliverance has been disappointing. While there is optimism about the long-term prospects of AI, the market may be reaching a point where companies need to demonstrate real-world applications to justify continued investment. Although the potential for AI remains promising, predicting specific timelines for its widespread adoption and impact is challenging.

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