AI darling Nvidia (NASDAQ:) continues to dominate the stock market, boosting broader indices with its extraordinary volume. However, according to BTIG, the excitement around the chipmaker’s shares has reached extreme levels, especially after the company announced a stock split on June 7.
According to BTIG, Nvidia’s current trading volume is 90% above average at approximately 80 million shares, which is the same as trading volume on May 23 earnings day. The jump brought its face value to about $90 billion, the second-highest in history, behind only March 8.
“This was essentially the stock’s best to date last month, including a 22% drawdown,” BTIG analysts said in a note.
Moreover, NVDA stock is currently trading approximately 85% above its 200-day moving average (DMA). BTIG points out that this extreme level has only been reached on a handful of occasions over the last decade: in 2016 when shares were at $30, in 2020 at $125, in 2023 at $400 and in March 2024 at $900.
“Such a move by the world’s second-largest company is stunning and, in our view, could lead to a rapid reversal in the coming weeks,” the investment firm wrote.
Meanwhile, the broader market is showing contrasting activity. Volume of the SPDR S&P 500 ETF (NYSE:) is 25% below average, with a pace of less than 40 million shares.