Nvidia Bulls Enter Stampede Mode

When did artificial intelligence enter the mainstream? When did it go from a futuristic tool to a topic of everyday discussion?

For me, the tipping point was about two years ago. While chatting in a school auditorium with other parents, waiting for our kids to take the stage, the topic surfaced repeatedly.

These parents weren’t traders or techies. They were just regular folks who were fascinated by the possibilities of artificial intelligence, and how it might affect their jobs and families.

This brings us to Nvidia’s AI Conference, taking place in Washington, D.C. this week. As the conference got underway on Monday, shares of Nvidia NVDA broke out of a three-month long consolidation to trade above $130 for the first time since August 26. 

Nvidia had been trapped in a symmetrical triangle pattern (green dotted lines) which began forming in June. Now that the price has exited that pattern, the path of least resistance for Nvidia is higher.

This summer, shares of Nvidia pulled back after its Blackwell chip was delayed due to a design flaw. The Santa Clara-based tech giant was forced to redesign the chip before entering full production mode.

Last week, Nvidia CEO Jensen Huang described demand for the new Blackwell chips:

"Blackwell is in full production, Blackwell is as planned, and the demand for Blackwell is insane," Huang said. "Everybody wants to have the most, and everybody wants to be first."

Regarding the AI conference, look for any forward-looking statements, particularly involving high-end Nvidia servers.

Nvidia’s new NVL36 and NVL72 servers — which respectively harness the power of 36 and 72 Nvidia chips — have been hit with minor delays. Investors will seek confirmation of recent reports that the servers will ship before the end of this year.

Last week, a separate dual-rack version, called the NVL36x2, was reportedly discontinued.

It’s possible that in the future, Nvidia will have meaningful competition, but right now, it appears to be the only game in town. If there are no further production issues, Nvidia could challenge its all-time closing high of $135.58, set on June 18 of this year.

Regarding mainstream AI, that cat is out of the bag. Even kids can create AI memes within seconds. 

Of course, this doesn’t scratch the surface of what is possible with AI. But if kids and non-tech normies can comfortably use AI, think of the possibilities in the hands of the truly gifted.

At the time of publication, Ponsi was long NVDA.