Nvidia Stock Soars Towards Record Highs, Reaching Peak Levels Since January

US Stocks

Nvidia stock recently soared about 2.6%, settling at $147.90, marking its highest close since the $149.43 peak seen in early January . It now sits just $1.50 below its all-time high, suggesting a breakout could be near.

What’s Fueling This Rally?

Why is Nvidia gaining upward momentum again? Several key drivers are at play:

  • Easing geopolitical tensions, which revived investor confidence in tech
  • Strong earnings from peers like Microsoft and AMD, reinforcing sector strength
  • A surge in optimism around AI innovation and cloud growth

These combined factors have created a technology-friendly environment, especially for semiconductor stocks.

AI and Data Centre Dominate Growth

A significant portion of Nvidia stock’s value lies in its strength in AI and data-centre chips. The latest earnings revealed record revenue of $44.06 billion, with data‑centre sales at $35.6 billion, a 93% year-over-year increase. That performance reinforces Nvidia’s dominance in AI hardware.

Technical Signal: Golden Cross & Flag Breakout

From a technical perspective, Nvidia is drawing attention. The stock recently formed a bullish golden cross, the point at which the 50-day moving average surpassed the 200-day moving average. It also broke out of a bullish ‘flag’ pattern. These are classic signals of potential momentum continuation, pointing to further upside.

Broader Market Context

Nvidia has significantly outperformed other semiconductor firms. For example, on May 29, Nvidia advanced 3.2%, while the S&P 500 gained just 0.4%. The PHLX Semiconductor Index also rose almost 4%, driven by Nvidia’s market presence and investor enthusiasm around tech adoption .

What’s Holding It Back?

Despite the rally, certain risks remain:

  • China’s export restrictions are impacting sales of certain Nvidia chips 
  • Valuation concerns, with Nvidia’s market cap now exceeding $3.5 trillion 
  • Recent news of Chinese firms allegedly using Nvidia chips illicitly sparked regulatory scrutiny abroad 

These issues could temper the pace of gains or spark short-term pullbacks.

Analyst Views: Momentum vs. Valuation

Analysts are divided. Many still maintain a “Hold” rating, citing stretched valuations. However, bullish technical setups and AI growth support the case for continued upside . For example, analysts at Seeking Alpha forecast a potential sharp breakout above the January high, based on strong earnings and chart patterns.

Key Levels to Watch

Experts are keeping an eye on the following price levels:

  • Support around $130, a critical zone in case of a pullback
  • Near-term resistance at $150 (just above the January peak)
  • A breakout above this could lead to the $160s zone, according to the recent trendline projection

These benchmarks help investors manage risk and spot buying opportunities.

Upcoming Catalysts to Watch

Several upcoming events could serve as triggers:

  • CEO Jensen Huang’s upcoming speech in Paris, where partnerships or product announcements may emerge
  • Developments in U.S.-China trade talks in London, which could impact chip export policies
  • Continued growth in global AI infrastructure demand, particularly with new supercomputers like Europe’s “Blue Lion” project

Any of these could provide fresh momentum for the stock.

Final Take

Nvidia stock is at a pivotal moment, poised just below its all-time high but supported by strong fundamentals and bullish technical signs. While valuation and export policy risks could cause hiccups, the broader story of AI-driven growth and data-centre dominance remains compelling. For investors, the next few weeks could hold the key to whether Nvidia pushes past January’s record.

Disclaimer

This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.