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07/06/24
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BTIG Analysts Believe Nvidia Stock Rally Will Lead to Swift Reversal
Nvidia, the market’s current AI darling, is still dominating stock markets and drives broader indices with its massive volume. According to BTIG analysts, the hype about the chipmaker’s stock has hit extreme levels, especially after the company said it would split stock on June 7.
BTIG says Nvidia’s current trading volume is 90% higher than average, on track for about 80 million shares, which is near its volume on its earnings day on May 23. That surge puts its notional value traded at about $90B, the 2nd highest in history, trailing only behind March 8.
BTIG analysts noted this was essentially the highest for the stock up to its earnings last month and included a 22% drop.
Nvidia’s stock is also trading about 85% higher than its 200-day moving average at the moment. BTIG underlines that this extreme level has only been reached in a few cases over the last decade: when the stock was at $30 in 2016, at $125 in 2020, at $400 in 2023, and at $900 in March this year.
The investment firm said this type of move as the second biggest company in the world is amazing, and in their view, likely to lead to a fast reversal over the coming weeks.
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