Nvidia shares are still struggling to break out of their monthslong trading range. The chip maker is being held back by geopolitical concerns as well as competition and production worries.
Nvidia traded down 0.1% to $188.37 in after-hours trading on Friday. The stock closed up 2.6% in Friday’s trading session, closing higher for an eighth consecutive trading session.
It seems unlikely Nvidia can regain recent highs of more than $200 a share while concerns linger about the Iran conflict and the effective closure of the Strait of Hormuz, which could create problems for the chip supply chain, especially for Asian semiconductor manufacturers hit by rising energy prices and potential shortages of helium which is key to the manufacturing process.
“Street sentiment on the name is mixed; while Nvidia holds a clear leadership position in genAI with NT [near-term] earnings upside, bears are concerned around potential ramp issues for Vera Rubin and increasing competition,” wrote KeyBanc analyst John Vinh in a research note on Sunday.
Vin has an Overweight rating and $275 on Nvidia shares.
