Analyst: Nvidia's Record High Reignites AI hype, AI-Related ETFs May Be Poised for Breakout

Odaily reports: Crypto analyst Ali posted on X platform that Nvidia (NVDA) shares hit an all-time high of $237.88 on October 2, up nearly 14% since September 14, and are currently testing resistance at the upper boundary of a channel, with potential to rise further toward a target price of $260.

As the AI sector regains market attention, he is watching two related ETFs. The first is the Direxion Daily Semiconductor Bull 3X ETF (SOXL), which seeks to deliver 3x the daily performance of a semiconductor index. SOXL appears to be breaking out of a channel structure on the 4-hour chart, and if the $150 support level holds, the trend could point toward $210.

The other is the Roundhill Memory ETF (DRAM), which primarily invests in global memory chip companies. DRAM is currently forming an ascending triangle consolidation pattern, and if it breaks above $64 on an hourly close, it could confirm a breakout, with a target of $80, representing a potential gain of about 25%.

Ali added that Nvidia's rally has refocused market attention on the AI sector, and he will be watching whether the technical patterns of these two ETFs further confirm the continuation of the AI rally.