Nvidia has powered to new all-time highs, reclaiming its title as the world’s most valuable
company. The move is being driven by a blend of AI-fuelled optimism and technical resilience.
AI spending is alive and well
After a rocky start to the year, Nvidia’s resurgence has been fuelled by a sharp rebound in
confidence across the AI ecosystem. At the company’s shareholder meeting, CEO Jensen Huang
painted a bullish long-term picture, calling the AI boom a multitrillion-dollar opportunity and
highlighting the rise of sovereign AI infrastructure around the world. That message landed well with
the market, especially after several big tech firms reaffirmed their commitment to AI investment
during earnings season.
Micron added fuel to the rally with a blowout earnings report, topping forecasts and issuing strong
guidance on AI-driven demand. Investors have also warmed to the idea that Nvidia’s grip on the AI
hardware stack remains firm, despite rumblings of competition. Cloud giants like Microsoft and
Amazon may want to build their own chips, but for now, the fastest and most scalable path still runs
through Nvidia.
The price action tells its own story
They say the strongest stocks are the ones that bounce back quickly from bad news. Nvidia fits the
bill. After a nasty correction in Q1, triggered by China export restrictions and the DeepSeek
breakthrough, it would’ve been easy for sentiment to stay sour. Instead, since mid-April, the chart
has told a different story. The January gap has been closed, the stock has gone sideways to digest,
and now we’ve seen a clean breakout to fresh highs.
Volume was healthy on the move higher. Not euphoric, but solid enough to back the price action.
What matters now is follow-through. Traders will want to see Nvidia hold above the breakout zone,
and so far the early signs are promising. Price has now closed above the breakout for three sessions
in a row, increasing the probability that this isn’t a fake-out.
There’s also a clear ascending trendline in play, offering a reference point for future pullbacks
alongside the old horizontal resistance. The RSI is up at 76, but that’s no red flag here. Nvidia has
happily trended with the RSI in the 80s before, and momentum doesn’t tend to fizzle out just
because it’s technically overbought.
NVDA Daily Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not
constitute investment advice nor take into account the individual financial circumstances or
objectives of any investor. Any information that may be provided relating to past performance is not
a reliable indicator of future results or performance. Social media channels are not relevant for UK
residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly
due to leverage. 85.24% of retail investor accounts lose money when trading spread bets and
CFDs with this provider. You should consider whether you understand how spread bets and CFDs
work and whether you can afford to take the high risk of losing your money.
company. The move is being driven by a blend of AI-fuelled optimism and technical resilience.
AI spending is alive and well
After a rocky start to the year, Nvidia’s resurgence has been fuelled by a sharp rebound in
confidence across the AI ecosystem. At the company’s shareholder meeting, CEO Jensen Huang
painted a bullish long-term picture, calling the AI boom a multitrillion-dollar opportunity and
highlighting the rise of sovereign AI infrastructure around the world. That message landed well with
the market, especially after several big tech firms reaffirmed their commitment to AI investment
during earnings season.
Micron added fuel to the rally with a blowout earnings report, topping forecasts and issuing strong
guidance on AI-driven demand. Investors have also warmed to the idea that Nvidia’s grip on the AI
hardware stack remains firm, despite rumblings of competition. Cloud giants like Microsoft and
Amazon may want to build their own chips, but for now, the fastest and most scalable path still runs
through Nvidia.
The price action tells its own story
They say the strongest stocks are the ones that bounce back quickly from bad news. Nvidia fits the
bill. After a nasty correction in Q1, triggered by China export restrictions and the DeepSeek
breakthrough, it would’ve been easy for sentiment to stay sour. Instead, since mid-April, the chart
has told a different story. The January gap has been closed, the stock has gone sideways to digest,
and now we’ve seen a clean breakout to fresh highs.
Volume was healthy on the move higher. Not euphoric, but solid enough to back the price action.
What matters now is follow-through. Traders will want to see Nvidia hold above the breakout zone,
and so far the early signs are promising. Price has now closed above the breakout for three sessions
in a row, increasing the probability that this isn’t a fake-out.
There’s also a clear ascending trendline in play, offering a reference point for future pullbacks
alongside the old horizontal resistance. The RSI is up at 76, but that’s no red flag here. Nvidia has
happily trended with the RSI in the 80s before, and momentum doesn’t tend to fizzle out just
because it’s technically overbought.
NVDA Daily Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not
constitute investment advice nor take into account the individual financial circumstances or
objectives of any investor. Any information that may be provided relating to past performance is not
a reliable indicator of future results or performance. Social media channels are not relevant for UK
residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly
due to leverage. 85.24% of retail investor accounts lose money when trading spread bets and
CFDs with this provider. You should consider whether you understand how spread bets and CFDs
work and whether you can afford to take the high risk of losing your money.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.