Nvidia Stock Chart & Technical Analysis

There is a well-known rule in financial markets: markets and prices tend to react to news more strongly depending on the nature of their current trend. In other words, when the broader Nasdaq trend is bullish, as is currently the case, positive news is generally expected to generate a stronger market reaction than negative news. Against this backdrop, it becomes important to assess how Nasdaq will respond to the results of the world’s largest technology company by market capitalization.

Nvidia’s Results Reinforce Strong AI Demand

The company’s results came above expectations, both in terms of revenue and earnings per share. Even its forward revenue guidance was stronger than analysts’ estimates. These positive figures are even more notable considering that Nvidia’s current guidance assumes no revenue from data-center chip sales to China. Overall, the profit margins of U.S. companies in the second quarter reached a record level of 10%, supported by strong demand and robust consumer spending despite higher prices.

This is where Nvidia’s results become particularly important in answering one of the key questions facing the artificial intelligence market: Has the massive wave of AI spending reached its peak?

The data provided by the company suggest that major players are not treating the current investment cycle as if it were nearing its end. Nvidia and Amazon Web Services (AWS) have expanded their partnership to deploy two million additional graphics processing units (GPUs) through Amazon’s cloud infrastructure during 2027 and 2028. At the same time, Nvidia indicated that demand has become so strong that shortages of memory components are among the factors limiting its ability to expand.

Technical Analysis

Looking at the stocks’ technical performance, Nvidia shares are down around 2.36% since the beginning of the current week, following a decline of approximately 4.6% last week. However, pre-market prices suggest that the stock could open today near $219 per share, compared with yesterday’s close of $209.60. This creates the possibility that the stock could reverse its direction and move higher during this week’s trading.

The accompanying chart also shows that the stock is consolidating horizontally near its all-time high of $225 per share, while remaining above its 35- and 50-week moving averages. It is also held above the $190 support zone. Therefore, the key question investors are watching now is whether these financial results can push the stock to achieve a new record weekly close above $225, or whether market sentiment could drive the stock below the $190 support level. This makes today’s session particularly important for determining the stock’s next direction.