Nvidia stock exceeds $135 as Trump eases chip export rules
Nvidia's strong financial performance has contributed to the stock's bullish trajectory
βNvidia (NASDAQ: NVDA) has demonstrated a robust technical rebound, with its stock price climbing to $135.34 as of May 15, 2025. This surge represents a significant recovery from its April low of $86.62, showcasing a remarkable 56% gain in just over a month.Β
Moreover, the stock is currently approaching a key resistance level at $150. The Relative Strength Index (RSI), a popular momentum indicator, is nearing 70, suggesting that while the stock is experiencing strong bullish momentum, it may soon enter overbought territory. This could lead to a period of consolidation or minor correction. Traders should monitor this indicator closely to assess the potential for a short-term pullback.
Support levels for Nvidia are identified at $115 and $96. These levels could serve as consolidation points if the stock experiences a correction. The $115 mark aligns with a previous area of price congestion, making it a significant short-term support. Meanwhile, the $96 level represents the lower end of the recent rally, providing a critical long-term support level that could be tested in the event of a broader market decline.
NVDA stock price dynamics (March 2025 - May 2025). Source: TradingView.
The current technical setup suggests a bullish outlook for Nvidia, with the potential for further upside if the stock can maintain its momentum and overcome the $150 resistance. However, traders should remain vigilant for signs of exhaustion, particularly as the RSI approaches overbought conditions.
Policy easing and strategic partnerships fuel optimism
The recent surge in Nvidia's stock can be attributed to several favorable developments. One of the most impactful catalysts has been the decision by U.S. President Donald Trump to loosen chip export rules. This policy shift has alleviated concerns over international sales restrictions, particularly in relation to China, which is a key market for Nvidia's high-performance chips. The ability to continue exporting advanced GPUs and AI hardware to Chinese companies is expected to significantly boost Nvidia's revenue in the coming quarters.
Additionally, Nvidia recently announced a strategic partnership with a Saudi Arabian artificial intelligence company. This partnership involves the sale of hundreds of thousands of advanced GPUs over a five-year period, further solidifying Nvidia's position as a leader in the AI and semiconductor industries. The deal not only enhances Nvidia's revenue prospects but also reinforces its brand as a key technology provider in the rapidly growing AI sector.
Beyond these external factors, Nvidia's strong financial performance has also contributed to the stock's bullish trajectory. The company reported a 71 percent increase in earnings per share (EPS) and a 78 percent rise in sales, outperforming market expectations. Nvidia's leadership in the AI sector, driven by its advanced GPU technology, has positioned it as a critical player in the global technology landscape. The company's focus on expanding its AI ecosystem, coupled with robust demand for its products across various industries, underscores its long-term growth potential.
Targeting $150 with potential for further gains
Considering the current technical and fundamental landscape, Nvidia's stock is well-positioned to test the $150 resistance level in the short term. A successful breakout above this level would likely trigger further buying interest, potentially driving the stock to new all-time highs. Such a move could be fueled by continued positive news on the regulatory front, strong earnings, or further strategic partnerships.
However, investors should be mindful of the risks associated with the stock's rapid rise. The RSI approaching 70 suggests that Nvidia may be nearing overbought territory, which could lead to a period of consolidation or even a short-term correction. In such a scenario, the $115 and $96 support levels would become critical, providing potential entry points for buyers looking to capitalize on a pullback.
Improved U.S.-China trade relations have boosted tech stocks, with Nvidia benefiting directly due to its leadership in AI and gaming. Strong investor confidence and robust global demand for AI solutions continue to support Nvidia's growth.
