Nvidia stock rises to $110 as AI chip bets defy 2025 tech slump
The market context surrounding Nvidia is driven by demand for AI-related infrastructure.
As of April 14, 2025, Nvidia Corporation (NASDAQ: NVDA) is trading at $110.93, marking a daily gain of 3.12%.
Despite this rebound, the stock remains 17.39% down year-to-date, reflecting ongoing macroeconomic challenges and investor concerns over high valuations. The stock currently trades approximately 27% below its 52-week high of $153.13, but it has still delivered an impressive 22.42% gain over the past 12 months, showcasing resilience despite headwinds.
Nvidia’s technical picture suggests a complex scenario. The Relative Strength Index (RSI) hovers near neutral levels, suggesting neither oversold nor overbought conditions. The 50-day moving average, currently at around $118, is acting as the next overhead resistance, while the 200-day moving average, closer to $104, remains a critical support level. If the stock breaks above the $118 mark, it could retest the $125 and $135 resistance zones. On the downside, failure to hold the $104 support would open the door toward $95.
NVDA stock price dynamics (February 2025 - April 2025). Source: TradingView.
Trading volume has been elevated in recent sessions, with intraday volume exceeding 310 million shares. This indicates strong investor interest, but also higher volatility. The immediate trading range is forming between $106 and $112, with potential for a breakout in either direction based on news catalysts or earnings-related guidance.
AI sector outlook and Nvidia's strategic position
The broader market context surrounding Nvidia is driven by continued demand for AI-related infrastructure, cloud computing, and data center growth. Nvidia's dominance in the GPU segment remains largely uncontested in terms of performance. Its latest NVL72 server system reportedly delivers up to 30x inference performance improvement compared to previous systems, positioning Nvidia as the hardware backbone for AI workloads.
However, challenges are mounting. U.S.-China trade tensions are escalating, with newly announced tariffs totaling 145%. While China has not yet directly targeted Nvidia, the geopolitical risk could have long-term implications for supply chains and component sourcing. At the same time, major cloud providers such as Amazon (Trainium) and Google (Ironwood TPU) are accelerating their efforts to develop in-house AI chips, reducing dependency on Nvidia. This trend could weigh on Nvidia’s long-term growth trajectory, though partnerships such as Google Cloud's adoption of Nvidia's Vera Rubin chips show that collaboration remains strong.
Recent news also indicates that Nvidia plans to invest billions of dollars in new U.S.-based chip manufacturing and AI infrastructure, aligning with federal efforts to onshore critical tech supply chains. These investments may improve Nvidia's resilience to global trade disruptions and position it to benefit from government subsidies tied to the CHIPS Act and similar initiatives.
Short-term scenarios
Looking ahead, Nvidia’s stock is likely to remain volatile but shows signs of stabilization above the $105 level. If macroeconomic sentiment improves and upcoming earnings reaffirm strong demand for AI GPUs, a bullish breakout toward $125 is plausible in the next 4–6 weeks. This would require confirmation via a close above the 50-day moving average and sustained volume.
On the bearish side, a breakdown below $104 could trigger a correction toward $95, especially if inflation or interest rate concerns resurface. Overall, Nvidia remains a high-beta stock closely tied to AI trends and tech sector flows. In the short term, a trading range of $104–$125 is expected, with the bias skewed to the upside if AI spending and data center investments continue to accelerate.
Last week, Nvidia surged 18.7%—its strongest rally in nearly two years—after President Trump announced a 90-day pause on reciprocal tariffs, lifting semiconductor stocks across the board. However, the stock still faces structural risks, including a proposed 32% U.S. tariff on Taiwanese imports that could disrupt its supply chain via TSMC.
