Nvidia’s breakneck rally shows signs of overheating
Ryan Vlastelica / Bloomberg • • 4 min read
The latest leg of the rally has been driven by news that Nvidia plans to resume sales of some AI chips in China with the approval of the US government. Photo: Bloomberg
Follow us on Facebook and join our Telegram channel for the latest updates.
Nvidia Corp traders keep getting reasons to buy the stock, but the breakneck rally is showing signs of overheating.
The chipmaker’s 14-day relative strength index briefly topped 80 on Friday, the highest since June 2024 when the stock dropped more than 20% over the following six weeks. The momentum gauge tracks the speed of a stock’s recent price changes and a reading over 70 is a signal to some analysts that buying is at extreme levels.
Never miss out on important financial news and get daily updates today
×
Download The Edge Singapore App
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
