NVDA – Follow-Up
The blow off and negative reversal means this is likely it for Nvidia. The stock buyback at these levels was the tipoff. If everything was so good and demand so high you wouldn’t need to buy back shares to goose the stock. I thought they would announce a stock split and they probably held that back for just this contingency. The stock will find a level here or slightly lower and then they will probably announce a split. That will give you the final pop to create an ultimate top.(Could be higher than yesterday’s high or maybe not.) As I stated in a post a while back about semiconductors when there was the shortage and I explained that every cycle companies double and triple order because there are no penalties for doing so and you end up with boom and busts in semis everytime. The same thing is playing out with NVDA and the AI GPU chips. Being the only supplier(currently) everyone has double and tripple ordered. Competition is coming and this AI chip boom is close to a peak as far as chip prices are concerned. Wait for the likely split and see how the chart develops.