Nvidia gapped lower to start the session but has seen buying since then to show resilience again. This is a stock that attracts a lot of attention, and if the AI trade starts back up, traders will be watching.
Nvidia
Nvidia has initially gapped lower to kick off the trading session on Wednesday but has shown pretty strong resilience considering that interest rates are higher in America, which is typically pretty negative for high-flying tech companies such as Nvidia. The market continues to see a lot of volatile action, but ultimately, I think you have to look at this as a market that is more or less a staple of the artificial intelligence sector.
If the artificial intelligence trade starts to come back into vogue, Nvidia is one of the big names that will certainly be attractive to traders. If the artificial intelligence trade gets hammered, Nvidia is generally one of the ones that suffers almost immediately. That being said, this is a market that, given enough time, will almost certainly have to make a bigger decision.
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It's worth noting, though, that as it is fighting and it has recently bounced pretty significantly from the $200 level, it does suggest that there is life here. And in this environment, it's hard not to appreciate just how strong it is in fact behaving.
The $215 level has recently been significant resistance, and now we will be looking to see if that continues to offer a bit of a ceiling. I have no interest in shorting Nvidia, but I do recognize that there is a lot out there to be said about the situation in the Middle East and, of course, the interest rate drag on some of these companies. All things being equal though, this looks like consolidation after a nice bounce, which is probably more bullish than bearish.
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