NVIDIA (NVDA) Could Break Out to New Highs

NVIDIA Corporation (NVDA) stock has completed a three-week basing pattern on top of the 50-day moving average and turned sharply higher, setting the stage for a test of September's all-time high near $590. A wave of positive catalysts is driving the uptick, which could pick up steam heading into mid-month. Accumulation readings have already lifted to new highs, establishing a brisk tailwind that raises the odds for a successful breakout and advance toward $700. BMO Capital Markets raised its NVIDIA price target from $565 to $650 on Tuesday, while Needham analyst Rajvindra Gill just highlighted the new Data Processing Unit, which is a "data center on a chip" that can speed up CPU performance by offloading "critical networking, storage, and security tasks." The state-of-the-art technology could have major applications in the cloud computing and artificial intelligence communities, enhancing NVIDIA's already stellar reputation and bottom line.