Nvidia’s stock had a tough week, falling 5.74% to $138.25 and wiping out most of its gains from November. Even with this drop, the stock is holding steady above a key support level, giving investors hope for a rebound.
The company’s recent earnings were impressive. Nvidia reported $0.78 per share in earnings, beating expectations and showing a 111% jump from last year. Its revenue also shot up 94%, reaching $35.1 billion, thanks to its strong position in the booming AI industry.
Right now, Nvidia’s stock is staying above $130, a critical support level. Analysts say it needs to break past $144.50 to push higher, with $150 as the next big target. But if the price falls below $138.25, it could drop back to test the $130 mark.
For those into options trading, this dip could be a good chance to act. A strategy like a bull call spread allows traders to limit risk while aiming for solid returns. By buying a $140 call and selling a $150 call for April, traders could make up to $595 if Nvidia’s stock hits $150 or higher. The risk? Losing the $405 spent on the trade if things don’t go as planned.
Of course, Nvidia has challenges too. U.S. export rules restricting sales of advanced chips to China could slow its international growth. Even so, Nvidia’s role in the AI revolution makes it a long-term powerhouse, especially if it clears key resistance levels soon.
For now, Nvidia’s stock drop might just be a chance for investors to jump in before the next big move. Its strong performance and leadership in AI could make it a winner in the long run.
