The next wave of AI: Is Nvidia set for a strong rally?

Nvidia's stock has surged 25% in the last month, signaling continued strength in the AI rally. With anticipation building around its upcoming Blackwell chips, Nvidia is poised to lead the next wave of AI demand.

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Unprecedented demand for Blackwell chips:

Tech giants like OpenAI, Microsoft, and Meta are eager to integrate Nvidia’s Blackwell chips into their AI-driven data centers. Priced between $30,000 and $40,000 per unit, these chips promise major advancements over the current Hopper models, with billions in revenue expected as production ramps up.

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Nvidia’s AI hardware dominance:

Nvidia’s GPUs power nearly every AI application, driving its impressive financial performance, including a 122% year-over-year revenue increase in the latest quarter. The company's leadership in AI hardware has also helped it surpass Microsoft as the second-most valuable company globally.

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Technical outlook:

Nvidia’s stock is currently around $134 with strong momentum, though flat RSI near 70 and nearing the Bollinger band suggest a potential slowdown. Analysts are eyeing the path to $200 as the AI demand continues to grow.

Read the full article here: https://www.finextra.com/blogposting/27027/the-next-wave-of-ai-is-nvidia-set-for-a-strong-rally.