Nvidia stock rally ‘likely to bring a quick reversal in coming weeks’ From Investing.com

AI darling Nvidia (NASDAQ:) continues to dominate the stock market and leads broader indices by sheer volume. But according to BTIG, the hype surrounding the chipmaker’s stock has reached extreme levels, especially after the company announced a stock split on June 7.

According to BTIG, Nvidia’s current trading volume is 90% above average and similar to the volume on its May 23 earnings day, at a pace of approximately 80 million shares. The surge took the nominal value to about $90 billion, the second highest in history after March 8.

“This essentially marks the stock’s all-time high until last month’s earnings, which included a 22% decline,” BTIG analysts said.

Moreover, NVDA stock is currently trading approximately 85% above its 200-day moving average (DMA). BTIG highlights that the stock price has reached these extreme levels several times over the past decade: in 2016 when it was at $30, at $125 in 2020, at $400 in 2023, and at $900 in March 2024.

“For the world’s second-largest company, this type of move is surprising. In our view, a quick reversal is likely in the coming weeks,” the investment firm wrote.

Meanwhile, the broader market shows contrasting activity. SPDR S&P 500 ETF (NYSE:) volume is 25% below average, with a trading speed of less than 40 million shares.