Is growth of NVIDIA stock price sustainable?

The stock of NVIDIA Corp. broke through the support level of $508 on Jan. 8, 2024 and reached $823.94 on Feb. 23. The rally is explained by growth in demand on high-end GPUs  from the companies in AI sector. Should we expect the rally to continue?

Daily chart of NVIDIA Corp. (NVDA) stock.
Daily chart of NVIDIA Corp. (NVDA) stock.

Short term: Based on technical indicators (MACD), the stock is overbought. Even if the trend continues in the long term, it is likely that the stock experiences moderate correction as traders take profit or trades in the range (around $600-$800).

Long term: The stock behavior depends on whether AI industry is able to monetize current potential and turn to profit in a long run. It is likely that the demand for GPUs will continue to rise in the coming years even if the AI development is funded primarily with the investor’s money.