REASONS FOR NVIDIA STOCKS JUMPS 9% on JAN 28, 2025

Nvidia’s stock surged 9% on January 28, 2025, recovering from a huge $600 billion loss just the day before. This rebound was part of a broader tech sector rally, with the Nasdaq up 2% and the S&P 500 rising 0.9%. On January 27, Nvidia had dropped 17%, fueled by concerns over the rise of DeekSeek, a Chinese AI startup that threatened U.S. leadership in AI. Despite the fears, Nvidia bounced back, showing the market’s confidence in its role in powering AI. While some believe AI is getting more efficient, others are uncertain if this growth will last. As the market remains volatile, key price levels are crucial. Will Nvidia’s growth continue, or is this just a short-term spike?

Will Nvidia’s growth continue, or is this just a short-term spike? Let’s discuss, what’s really driving Nvidia’s stock right now.

Nvidia Stock Forecast: A Broader Tech Sector Rebound

The 9% jump in Nvidia’s stock was part of a broader recovery in the tech sector. On January 27, tech stocks posted their worst performance since 2020, but on January 28, investors saw a significant rebound. The Nasdaq led the charge, up by 2%, with Nvidia leading the way as it bounced back almost 9%. Other stocks in the sector like Broadcom and Oracle also recovered, but Nvidia’s performance stood out due to its dominance in the AI chipmaking space.

Image source: Investopedia

Nvidia’s Position in the AI Sector

Nvidia’s strong position in AI remains one of the key drivers of its stock performance. As the demand for AI and machine learning models increases, so does the need for powerful GPUs. Nvidia is a clear leader in this market. Despite the fears sparked by DeepSeek’s cost-efficient AI models, Nvidia’s technology continues to be essential for large-scale AI deployments. Analysts say the company’s chips are powering cutting-edge models, and its market dominance remains unchallenged. This is reflected in the stock’s recovery, despite broader market volatility. This makes the Nvidia stock forecast positive, as its role in the AI boom continues to grow.

Market Sentiment and Investor Confidence

Investor sentiment played a crucial role in Nvidia’s recovery. After the massive tech selloff on January 27, stocks like Nvidia were highly attractive to investors looking for value. Nvidia was one of the hardest-hit stocks on Monday, but its 9% jump on Tuesday shows the power of investor confidence in its long-term prospects. 

The company’s role in the AI boom is central to this renewed interest, as Nvidia is not just a chipmaker; it’s a key enabler of AI’s growth, which continues to be one of the most significant trends in technology. Investors are watching the Nvidia stock forecast closely, as its ability to capitalize on this growth is crucial.

Key Technical Levels for Nvidia’s Stock

Technical indicators also point to important price levels that could shape Nvidia’s future movement. Analysts, such as Kri Artech from Wicked Stocks, emphasize the critical 12707 level. A close above this level could signal further gains. On the other hand, failure to maintain above 10447 could trigger a deeper correction. The company’s price action is currently at a crossroads, and these levels are crucial for determining whether the current rally has legs. The Nvidia stock forecast depends heavily on these technical levels.

• Key Support Level: 10447
• Critical Resistance Level: 12707
• Potential Target for the Week: 10417
• Long-Term Target if Support Holds: 13392

What’s Next for Nvidia?

• Looking forward, Nvidia’s trajectory will depend on its ability to maintain these technical levels and its ongoing leadership in AI.
• Analysts predict that if Nvidia stays above 12707, it could rally as high as 13392 in the next few days.
• However, if the stock slips below the 10447 level, it could face a significant drop, with the next major support being around 7358. The tech sector showing signs of recovery. The Nvidia stock forecast remains positive as long as the company stays above these key levels.

Final Thoughts

Nvidia’s stock has shown strong resilience, quickly recovering after a big drop. Analysts remain divided on the long-term implications of DeepSeek’s advancements. While some view the recent dip as a buying opportunity, others advise caution. If Nvidia can maintain its position and meet these critical levels, it could see further gains in the coming weeks. The Nvidia stock forecast is one to watch closely, as the company’s role in AI could lead to substantial growth. Investors should closely monitor developments in the AI sector and Nvidia’s strategic responses to maintain a balanced perspective on the company’s prospects.

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Disclaimer:

Remember, this analysis is for informational purposes only and should not be considered financial advice. Always conduct your own research or consult a financial advisor before making any investment decisions.