Last week, Nvidia witnessed a significant surge in its shares, experiencing a nearly 25% increase on Thursday.
This surge was primarily driven by optimistic market sentiment surrounding the potential for substantial gains resulting from advancements in artificial intelligence (AI) technology. Nvidia itself expressed its expectation of generating $11 billion in the next quarter, which represents a remarkable increase of over 50% compared to the previously estimated figure of $7.2 billion. As a result of this impressive performance, Nvidia's market capitalisation now exceeds 2.6% of the entire S&P 500 index.
The possibilities presented by AI are vast and hold tremendous promise. However, at this stage, investors are uncertain about the precise magnitude of the benefits they will reap and the specific entities that will capitalise on them. Furthermore, the full extent of potential risks associated with AI remains not yet fully comprehended.
Consequently, it remains uncertain whether Nvidia's recent surge will be sustained in the long term. Exploring seasonal patterns and their potential impact on Nvidia's performance may provide valuable insights to help assess any underlying trends and dynamics within the company's operations.
Interestingly the next coming period shows seasonal weakness ahead. From June 01 to July 05 Nvidia has seen average falls in stock prices of over 5%. The largest fall was over 45% in 2008 and the largest gain was 38% in 2021. So, will Nvidia’s gap in price be filled with a retracement?
Major Trade Risks:
The biggest risk here is to do with whether or nor Nvidia can maintain its market position. Also broader risk sentiment is key here too.
Disclaimer: Past results and past seasonal patterns are no indication of future performance, in particular, future market trends. seasonax GmbH neither recommends nor approves of any particular ...
Disclaimer: Past results and past seasonal patterns are no indication of future performance, in particular, future market trends. seasonax GmbH neither recommends nor approves of any particular financial instrument, group of securities, segment of industry, analysis interval or any particular idea, approach, strategy or attitude nor provides consulting nor brokerage nor asset management services. seasonax GmbH hereby excludes any explicit or implied trading recommendation, in particular, any promise, implication or guarantee that profits are earned and losses excluded, provided, however, that in case of doubt, these terms shall be interpreted in abroad sense. Any information provided by seasonax GmbH or on this website or any other kind of data media shall not be construed as any kind of guarantee, warranty or representation, in particular as set forth in a prospectus. Any user is solely responsible for the results or the trading strategy that is created, developed or applied. Indicators, trading strategies and functions provided by seasonax GmbH or on this website or any other kind of data media may contain logical or other errors leading to unexpected results, faulty trading signals and/or substantial losses. seasonax GmbH neither warrants nor guarantees the accuracy, completeness, quality, adequacy or content of the information provided by it or on this website or any other kind of data media. Any user is obligated to comply with any applicable capital market rules of the applicable jurisdiction. All published content and images on this website or any other kind of data media are protected by copyright. Any duplication, processing, distribution or any form of utilisation beyond the scope of copyright law shall require the prior written consent of the author or authors in question. Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
