Nvidia stock nears $115 as earnings optimism builds on AI momentum
Investor sentiment around Nvidia remains highly positive.
As of May 6, Nvidia stock is trading at $113.82, down 0.6 percent over the past 24 hours. The stock has been trading in a tight consolidation range over the past several sessions, with the $115 mark acting as a psychological and technical resistance level.
This horizontal ceiling has been tested multiple times in the last week, suggesting strong buying pressure just beneath it. A confirmed breakout above this threshold could trigger a fresh wave of buying interest, potentially pushing the stock toward its next resistance zone near $120.
From a trend analysis perspective, Nvidia remains firmly bullish. The 50-day moving average is currently positioned near $110, while the longer-term 200-day moving average stands at approximately $102. These levels confirm that the medium- and long-term momentum remains upward. The stock continues to trade well above both of these averages, a pattern consistent with strong investor conviction.
NVDA stock price dynamics (March 2025 - May 2025). Source: TradingView.
The Relative Strength Index (RSI) stands at around 65, indicating a moderately overbought condition but not yet extreme. This suggests that while the stock is showing strength, it still has room to run before entering technically overheated territory. Importantly, trading volumes have picked up, with daily turnover exceeding 133 million shares, compared to the 30-day average of around 120 million. This rising volume trend is supportive of a potential breakout, particularly if accompanied by a bullish earnings catalyst.
Bank of America reiterates buy rating with $190 price target
Investor sentiment around Nvidia remains highly positive, driven by robust demand for AI and data center infrastructure. Bank of America recently reiterated its buy rating on the stock with an ambitious price target of $190. The investment bank emphasized Nvidia’s dominant 90 percent market share in AI training and growing presence in AI inference workloads as key strategic strengths.
This bullish stance is echoed by broader market dynamics. Major technology firms such as Meta, Microsoft, Amazon, and Alphabet have been scaling up their investments in generative AI, directly increasing demand for Nvidia’s high-performance GPU chips. Analysts view this as a secular growth trend that could sustain Nvidia’s earnings momentum for several quarters.
Meanwhile, Nvidia’s growing software and AI platform ecosystem, including CUDA and its partnerships with cloud service providers, further enhance the company’s competitive moat. However, investors should also weigh emerging risks. Notably, regulatory scrutiny over U.S. chip exports to China and increasing competition from domestic AI chipmakers like AMD and Google’s TPU efforts could create longer-term challenges.
Potential rally towards $120 in the short term
With technical indicators flashing bullish and institutional support reinforcing the growth narrative, Nvidia appears well-positioned to break out above $115 in the coming days. A successful push above this resistance level could open the door to a short-term rally toward $120, with upside driven by both momentum traders and long-term investors positioning ahead of earnings.
In the event of weaker-than-expected earnings or broader market pullback, the stock may revisit support at $110 or even dip to $105. However, unless there is a significant deterioration in macro or sector-specific sentiment, these pullbacks would likely be viewed as buying opportunities.
Nvidia, a key player in the AI tech boom, has faced significant setbacks in 2025, with its stock dropping about 20% year-to-date. This decline is primarily driven by macroeconomic pressures, growing competition, and U.S. export restrictions limiting sales of high-end GPUs like the H20 to China.
