NVIDIA & xAI’s Grok 3: A Game-Changer or Overhyped AI Play?NVIDIA’s stock ( NASDAQ:NVDA ) has been on an unstoppable rally, driven by the AI boom. Now, with Elon Musk’s xAI set to launch Grok 3 —trained on an impressive 100,000 NVIDIA H100 GPUs —the market is buzzing with speculation. Could this be the catalyst that propels NVDA to the next level, or are we approaching an AI-driven valuation bubble?
Key Developments :
Massive GPU Demand : xAI’s Grok 3 will utilize a staggering 100,000 H100 GPUs, reinforcing NVIDIA’s dominance in AI hardware and boosting its market position.
Supercomputer Expansion : Musk’s team is building one of the most powerful AI training clusters in Memphis, Tennessee. This development could significantly increase NVIDIA’s long-term revenue streams, given its key role in powering these systems.
Release Date : Grok 3 is set to launch today, February 17, 2025(4 AM GMT) , with a live demonstration, which may influence sentiment around AI-related stocks, especially NVIDIA.
Market Sentiment & Risks : While these developments seem bullish for NVIDIA, some analysts, including hedge funds like Elliott Investment Management, have raised concerns over the potential for overvaluation as the AI euphoria spreads.
Conclusion: Grok 3’s launch will be a pivotal moment, with NVIDIA at the heart of the AI revolution. Whether this sparks a fresh rally or raises concerns about an AI bubble remains to be seen.
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Now, let's use Technical Analysis to analyze NVIDIA stock(NVDA) .
In terms of technical analysis, the loss of an Ascending Channel is not good news for any asset and is a sign of weakness in the upward trend . This has happened to the NVIDIA stock(NVDA) .
From the point of view of Classical Technical Analysis , it seems that NVIDIA stock is completing the Rising Wedge Pattern .
Educational tip : The Rising Wedge Pattern is a bearish reversal or continuation pattern characterized by converging upward-sloping trendlines. It signals weakening bullish momentum, often leading to a breakdown below support. A confirmed breakout to the downside indicates a potential price decline.
I expect the launch of Grok 3 Artificial Intelligence(AI) can increase at least +10%+15% of NVIDIA stock(NVDA) . If the upper line of the Rising Wedge Pattern breaks , we can expect a further increase [ the next target can be Yearly Resistance(1=$175.68)(in case of breaking) ].
What’s your take? Drop your thoughts about NVIDIA in the comments! 👇
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NVIDIA Analyze (NVDAUSD), Daily time frame.
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