Nvidia Retail Traders Downbeat Even As Stock Stays On Course To Reclaim Record High: Spotlight Shifts To Annual Shareholder Meeting
(MENAFN- AsiaNet News)
Nvidia stock rallied on Tuesday, taking another step toward reclaiming its all-time high of $153.13, which it hit on Jan. 7. The gain came on the back of signals from the Middle East that the Israel-Iran standoff would be diffused.
The Jensen Huang-led artificial intelligence (AI) stalwart has seen strong gains since OpenAI's ChatGPT large-language model (LLM) kicked off rapid technology adoption in early 2023. The company manufactures high-performance AI accelerators that power most of the world's AI models and applications.
Nvidia stock suffered a setback early this year when Chinese AI startup DeepSeek launched its low-cost models. Although the stock staged a recovery from its early February lows, President Donald Trump's tariffs and the new China chip restrictions implemented by the new administration triggered renewed selling pressure.
After the geopolitical risk, the stock pulled back to a low of $86.62 on April 7 but has bounced back since then.
Wall Street analysts are upbeat about the stock's trajectory. The Koyfin-compiled consensus analysts' price target for Nvidia stock is $172.60, implying 17% upside potential.
Retail traders, however, aren't equally enthusiastic about the stock. On Stocktwits, retail sentiment toward Nvidia stock has been 'bearish' since a week ago. The sentiment meter on the platform read 27/100, relaying 'bearish,' with the message volume at 'low' levels.
NVDA sentiment and message volume as of 2:56 a.m. ET, June 25 | source: Stocktwits
A bearish watcher based their sentiment toward Nvidia stock on expectations of a weak July for the broader market.
Another user was bearish because Huang recently offloaded 100,000 Nvidia shares as part of a sale plan.
Apart from the extraneous factors impacting the stock, Nvidia investors could also be keyed in to the company's annual shareholder meeting scheduled for 12 p.m. ET on Wednesday. The meeting, planned to be held virtually, would discuss four management and three shareholders' proposals.
The management seeks to get its slate of 13 directors elected, advisory approval for executive compensation, ratification of PriceWaterhouseCoopers as its external accounting firm, and approval of a restated certificate of incorporation to remove supermajority provisions.
The advisory vote on executive compensation is important as it would relay investor sentiment toward the leadership and how it is shepherding operations and strategizing amid macro and geopolitical challenges.
The board, meanwhile, has recommended rejecting the three shareholder proposals, including the special shareholder meeting improvement, the director election resignation governance policy, and workforce data reporting.
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