NVDA – The Market Is Still Pricing in AI Growth
#NVDA $NVDA.US Looking at both the news backdrop and the technical structure, I remain positive on NVDA. What keeps me interested is not only that the stock remains in an uptrend, but also that Nvidia’s underlying growth story has yet to lose its main driver. Continued investment in AI, data centers, and computing capacity keeps Nvidia among the biggest direct beneficiaries of the AI infrastructure expansion cycle. For that reason, the current pullbacks look more like the market repricing future growth opportunities than a sign that the long-term thesis has changed.
From a fundamental perspective, the most important factor remains the scale of global spending on AI infrastructure. Major technology companies continue to require enormous computing capacity to build and operate AI models, which sits directly at the heart of Nvidia’s business. At the same time, maintaining access to at least part of China’s chip demand could provide additional revenue upside if restrictions allow. The company’s third-quarter revenue forecast of around $108 billion also suggests that AI demand is still translating into real business growth. Competition from Huawei, Alibaba, and other chipmakers remains a risk worth monitoring, but for now, NVDA’s investment case continues to be driven more by expanding AI demand and revenue growth potential.
On the daily chart, the market has yet to give me a strong reason to question that thesis. NVDA continues to trade within a long-term ascending channel, with larger pullbacks repeatedly attracting demand near the lower part of the structure. The stock is currently trading around $225 and remains above the Ichimoku Cloud, while $212–$220 is the area I consider the key near-term support base. If buyers continue to absorb supply there and the higher-low structure remains intact, $260–$270 becomes a reasonable next target, which also aligns with the upper portion of the rising channel.
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