Nvidia (NVDA) stock price forecast after CEO admits customer tensions

During the trading session on September 11, technology giant Nvidia (NASDAQ: NVDA) once again proved its status as a barometer of stock market sentiment.

The stock was able to maintain its short-term upward momentum and, boosted by the positive outlook of the company's CEO, Jensen Huang, caused price gains across the entire technology sector.

Nvidia stock saw a significant boost after Huang noted that the company is experiencing incredible demand for its chips. At the Goldman Sachs (NYSE: GS) Technology Conference on Sept. 11, the executive stated that “everything is sold out,” noting that AI customers are counting on the company's infrastructure.

The market viewed Huang's statement as a positive forecast for Nvidia, as the company is likely to continue dominating the semiconductor sector. As a result, Nvidia shares rose sharply, ending the trading session up 6% and valued at $116, continuing the impressive 142% year-to-date rally into 2024.

Growing tensions among Nvidia customers

Despite the positive news, Huang acknowledged that Nvidia's difficulties in meeting rising demand are leading to growing tensions with customers.

“The delivery of our components, technologies, infrastructure and software is very emotional for people because it directly affects their sales and their competitiveness. That's why we probably have more emotional customers today, and rightly so. And if we could meet everyone's needs, the emotions would disappear. But it's very emotional, it's really tense,” he said.

NVDA Stock Price Forecast

Based on Huang's assessment of customer tensions, Finbold consulted OpenAI's ChatGPT-4o platform to determine how the stock might trade in the future.

ChatGPT-4o stated that supply concerns could affect investor sentiment towards NVDA, potentially leading to negative price movements. In addition, the OpenAI tool suggested that the stock price could rise if the chipmaker assures customers that it will meet supply demand. However, if the issue persists, it could lead to further declines.

In terms of specific price movements, the AI ​​model predicted that if Huang's admission is viewed negatively, NVDA could fall to $100-$105 within the next two months. On the other hand, if the issue is resolved, the stock could rise to $130-$140 within the next three months.

Technical outlook for NVDA shares

In addition, a stock market analyst with the pseudonym Market Maestro predicted in an X-Post on September 11 that NVDA is on track for a bullish long-term outlook driven by the “Cup and Handle” pattern on the weekly chart. The pattern indicates a possible continuation of the prevailing uptrend.

However, he warned that short-term obstacles could jeopardize Nvidia's rise, such as resistance at the $150 mark. The expert also pointed to the 78.6 percent Fibonacci retracement at around $129, which could also be a potential price barrier.

Nvidia's basics

It's worth noting that Nvidia investors are hoping that the stock could achieve some stability at the current valuation. In particular, in the last few weeks, NVDA has been subject to massive volatility and price swings, leading to the stock being compared to trading like a penny stock.

Meanwhile, the semiconductor maker continues to be supported by key fundamentals as demand for its AI chips remains strong. Notably, the company's customer base continues to grow, with reports suggesting Saudi Arabia could join the push.

In this context, the US government is reportedly exploring whether Nvidia can export chips to Saudi Arabia to help the country train and run AI models. If the deal goes through, Nvidia will likely see a boost in revenue, which rose 122% year-over-year to $30.04 billion in the second quarter of 2024.

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