NVIDIA’s Record High Raises a Bigger Question About How Far the Rally Can Run

NVIDIA’s NASDAQ: NVDA stock price did something interesting in early October, rising to a new all-time high. The move broke the stock out of a significant trading range, extended the trend, and points to a continuation in the upcoming months and quarters.

Technically, the move brings several target projections into play, suggesting the stock can rise by solid double digits in the near term and by high-triple-digit amounts in the long term, setting the stage for this $5.7 trillion company to be worth $10. Investors should consider that doubling to a $10 trillion valuation. Investors should consider that reaching a $10 trillion valuation could happen within the next year or two, and may be only a stepping stone on the way to what this company may really be worth.

Technical targets are based on the existing range’s magnitude and the rally that came before it. They amount to $40 and $65 moves that, when projected from the breakout point, target $275 and $300. The $275 to $300 range is coincidentally just below the analysts’ consensus price target of $320.71, strengthening the case for NVIDIA’s modest near-term upside potential.

Trends Matter: NVIDIA and AI Are Not a Bubble