Nvidia stock rises 5.6% on AI deal amid U.S.-Saudi tech push
The catalyst behind Nvidia’s recent surge is a significant AI deal with Humain
Nvidia (NASDAQ: NVDA) has experienced a strong surge, climbing 5.6 percent in the last 24 hours to reach $129.93. This sharp upward movement marks a nearly 50 percent rebound from its April low of $86.62.
Nvidia's stock price has decisively broken above its 200-day moving average, a critical technical indicator that signals a shift from a bearish to a bullish trend. Specifically, the 50-day moving average is now positioned at $114.53, while the 200-day moving average stands at $107.27. These levels are not just technical indicators but also act as significant support zones. The stock’s ability to sustain prices above these moving averages indicates strong bullish sentiment among investors.
The Relative Strength Index (RSI), which measures the speed and change of price movements, currently reads 64.43. This is well within bullish territory but still below the overbought threshold of 70, suggesting that Nvidia has room for further gains before becoming technically overextended. Meanwhile, the Moving Average Convergence Divergence (MACD) is at 0.69, reflecting positive momentum. The MACD line has crossed above the signal line, further reinforcing the bullish outlook.
NVDA stock price dynamics (March 2025 - May 2025). Source: TradingView.
Key resistance levels for Nvidia are now identified at $130 and $150. A successful breach of the $130 level has already been achieved, which could pave the way for a rapid advance toward the next major resistance at $150. On the downside, immediate support is established at $115, the level of the 50-day moving average, followed by a more substantial support at $96, which aligns with recent lows.
Market context: Saudi AI deal boosts sentiment
The catalyst behind Nvidia’s recent surge is a significant AI deal with Humain, a new Saudi Arabian artificial intelligence company backed by the country's Public Investment Fund. According to the agreement, Nvidia will supply several hundred thousand advanced graphics processing units (GPUs) to Humain, supporting the development of a state-of-the-art 500-megawatt AI data center. This facility will be powered by 18,000 of Nvidia’s GB300 chips, which are among the most advanced in the market.
This deal was further highlighted during U.S. President Donald Trump's visit to the Middle East, where he expressed support for expanding AI cooperation between the United States and Saudi Arabia. The agreement is seen as part of a broader push by Saudi Arabia to establish itself as a global leader in artificial intelligence, leveraging Nvidia's cutting-edge technology.
The broader stock market also reacted positively to this development, with the S&P 500 moving into positive territory for the year. Nvidia’s strong performance is a clear reflection of growing investor confidence in the AI sector, particularly in markets where geopolitical support is a key driver.
Targeting $150 in the short term
Nvidia's current momentum suggests that a further advance toward the $150 resistance level is likely in the short term. The stock has already confirmed a bullish breakout above $130, and strong support at $115 provides a solid foundation for additional gains. The next critical target at $150 aligns with previous highs and represents a key psychological level for investors.
Should Nvidia break through $150, it may attempt to retest its all-time high of $153.13, which was established during a previous bullish cycle. On the other hand, if the stock faces resistance around $150, a short-term pullback toward the $115 support level cannot be ruled out. This would not necessarily signal a reversal but rather a healthy consolidation phase before further gains.
Improved U.S.-China trade relations have eased uncertainties, boosting tech stocks, including Nvidia. Strong demand for AI solutions and reduced tariff fears have supported Nvidia’s growth and investor confidence.
