Semifinals, NVDA ready for big changes as the GTC conference begins

Nvidia NASDAQ:NVDA it is not only in a positive phase; is setting records. With shares skyrocketing 241% in the past year and a staggering 77% year to date, the company has become an indispensable force in the world of technology. Its CEO, Jensen Huang, is a sought-after figure, and companies around the world seek out its graphics cards as rare treasures.

The anticipation is palpable as Huang prepares to take the stage at Nvidia’s annual GTC conference in San Jose, California. This event has historically been a platform for groundbreaking announcements, and this year looks set to be no different.

In 2022, Nvidia introduced its Hopper graphics architecture and H100 graphics processing unit, which quickly became the go-to choice for training and deploying AI models. Now all eyes are on the eagerly awaited debut of their successors, codenamed Blackwell Architecture and the B100 board. They are said to offer even greater performance, especially for running advanced models like OpenAI’s GPT-3.

But the hardware isn’t the only thing that attracts attention. Nvidia is also expected to showcase the latest advancements in its CUDA software, adding another level of excitement to the conference. With over 300 exhibitors and esteemed speakers from industry giants such as OpenAI, Meta and Microsoft, the GTC conference promises to be a melting pot of innovation and expertise.

However, amid this frenzy, the semiconductor sector has retreated slightly, raising questions about the timing of potential investments. Like the popular semiconductor ETF VanEck Semiconductor NASDAQ: SMHwhich includes Nvidia among its top holdings, retraces its recent highs, investors wondering whether now is the right time to take advantage of the sector’s resilience.

In this dynamic landscape, Nvidia is poised to once again redefine the future of artificial intelligence and computing. The GTC conference could unveil breakthrough technologies and provide valuable insights into the trajectory of the broader semiconductor market.

So, with the conference getting underway, could it be an opportune time to buy the sector’s recent pullback and its top holding, Nvidia, for a step higher?

The semiconductor ETF is off 9% from its recent highs

The VanEck Semiconductor ETF NASDAQ: SMH is a market capitalization-weighted index of 25 of the largest semiconductor companies listed in the United States. NVDA, TSM and AVGO are among its top three holdings.

The ETF is up nearly 75% over the previous year and is up nearly 25% year to date. More recently, however, after going vertical and hitting new highs, the sector ETF has moved back close to 9% between a convergent 5-day and 20-day SMA. Since the GTC conference kicked off as a sector-wide catalyst, now may be an opportune time to rejoin the sector ETF following its recent withdrawal.

If SMH were to recover to its declining 5-day SMA near $221, a short-term break of its downtrend would be confirmed, indicating the start of a new uptrend and upside. It will also be crucial to keep tabs on its three major holdings, mentioned above, as any significant directional moves in any of them could heavily influence the overall direction and sentiment of the sector ETF.

Nvidia Coils ahead of its conference

After an impressive start to the year, in which shares of the semiconductor giant rose to new heights, the stock has recovered nearly 10% from its all-time highs. Over the previous week, shares of NVDA remained largely unchanged as the stock consolidated near the flattening of the 5-day SMA into a tight range.

Last week’s action created an intriguing organization and opportunity ahead of its biggest event. With the stock extremely on edge, it looks set to make a major directional move as the GTC Conference gets underway. Investors and traders will be closely watching two potential inflection points for the stock. The $900 serves as resistance for a bullish breakout. For a potential news sell-off event, which seems unlikely given the hype and importance of the event, $860 represents a significant support area.

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