Nvidia Corp. (NASDAQ:NVDA) is currently trading near all-time highs, attracting traders despite its high valuation. Michael Kramer of Mott Capital Management suggested that investors may see a 30% drop in the stock based on technical analysis. This drop could signify a deep correction for the stock.
The anticipated drop in Nvidia’s stock could have broader implications for the market, as the company and its AI technology peers have been driving much of the market’s recent gains. Nvidia’s strong position in the AI accelerator market has propelled it to the top global corporation, with competition on the horizon.
Investors and analysts are wondering if Nvidia can sustain its rapid growth to justify its valuation, especially with increasing competition in the AI space. The company’s unique position as a fully integrated AI company and its first-mover advantage may help it stay ahead.
Nvidia’s stock price has fallen in premarket trading and closed down on Thursday, despite having gained significantly since the beginning of the year. The stock has outperformed the S&P 500 index, reflecting investor confidence in the company’s future prospects.
Overall, while Nvidia’s stock may face a significant drop according to some analysts, the company’s strong fundamentals and position in the AI market suggest that it may continue to be a dominant force in the industry for the foreseeable future. Investors should closely monitor developments in the market and Nvidia’s performance to make informed decisions.
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https://markets.businessinsider.com/news/stocks/looking-for-attractive-entry-point-in-high-flier-nvidia-investment-advisor-sees-nearly-30-pullback-ahead-of-late-august-earnings-1033495775