Nvidia stock jumps 3.3% as AI chip sales fuel breakout past $137 resistance
Nvidia's market capitalization now exceeds $3.4 trillion, placing it just behind Microsoft in the global rankings
As of May 30, Nvidia stock is trading at $139.19, up 3.3% over the past 24 hours, marking a significant continuation of the bullish trend that started following its recent earnings report.
This level represents a breakout above a key technical resistance of $137.40.
Highlights
- Nvidia broke above key resistance at $137.40, closing at $139.19 with a 3.3% gain, signaling strong bullish momentum.
- Earnings beat expectations with a 69% revenue jump, driven by AI chip demand despite China export headwinds.
- The short-term outlook remains positive with targets at $145 and $150, supported by strong technicals and institutional buying.
Nvidia’s stock is firmly positioned above its key moving averages. The 50-day moving average is currently at approximately $130, while the 200-day moving average sits near $110. Both these levels have provided consistent support throughout Nvidia’s recent uptrend and are indicators of strong medium- to long-term bullish sentiment. The fact that the price is now over 7% above the 50-day average is further confirmation of strong near-term momentum.
The Relative Strength Index (RSI), currently hovering around 70, is nearing overbought levels. While this suggests a potential for short-term consolidation, it also underscores the intensity of recent buying pressure. Volume has also been robust, with post-earnings sessions seeing trading volumes more than 20% above average, another signal of institutional support.
NVDA stock price dynamics (March 2025 - May 2025). Source: TradingView.
Support levels are now clearly defined at $137.40 (previous resistance) and $130. These will likely serve as buffers against short-term pullbacks. Immediate resistance lies at $145, with a secondary ceiling at Nvidia’s all-time high of $146.67. A daily close above this range would suggest another leg higher, possibly toward the $150 psychological threshold.
AI chip leadership overshadows geopolitical concerns
Nvidia’s fiscal Q1 results were exceptionally strong, reinforcing its position as the dominant player in AI and data center semiconductors. Revenue surged 69% year over year to $44.1 billion, while data center sales grew by 73% to $39.1 billion—reflecting the explosion in demand for AI-driven computing infrastructure. Despite macroeconomic uncertainties and U.S. restrictions on AI chip exports to China, which caused a $10.5 billion revenue impact, Nvidia’s results exceeded Wall Street’s expectations across the board.
CEO Jensen Huang emphasized three primary vectors for future growth: AI reasoning, AI agents, and sovereign AI infrastructures. The company has already secured sovereign AI development deals in Saudi Arabia and the United Arab Emirates, with more likely to follow. Furthermore, Nvidia’s next-generation AI servers, built around its Blackwell GPU architecture, are slated for deployment in the second half of 2025. This will likely trigger another cycle of accelerated capex from hyperscalers and enterprise AI adopters.
Nvidia's market capitalization now exceeds $3.4 trillion, placing it just behind Microsoft in the global rankings. Analysts are increasingly comparing Nvidia’s influence on technology to historical inflection points like the rise of the personal computer or the smartphone era. Its dominance in high-performance GPUs gives it a central role in the AI value chain, and its ecosystem continues to expand through partnerships with cloud infrastructure players and sovereign governments.
Bullish bias remains with $145 as next target
Given the strength of the recent breakout, Nvidia stock is likely to test the $145 level within the next few sessions. If it closes convincingly above this point, a rally toward the $150 level could unfold swiftly, particularly if institutional momentum continues and macro conditions remain favorable. The RSI being in overbought territory may lead to minor consolidation; however, any pullback toward $137 or even $130 is likely to be viewed as a buying opportunity.
The key downside risk remains policy-related—specifically, any expansion of U.S. export restrictions or potential retaliatory actions from China. However, Nvidia’s broad diversification beyond China and its focus on next-generation AI infrastructure suggest that it is well positioned to absorb these shocks.
CEO Jensen Huang warned that U.S.-China export controls could hurt American AI leadership and boost Chinese alternatives. In response, Nvidia is expanding globally with major AI deals in the Middle East and Taiwan, while investing $500 billion in U.S. manufacturing and R&D to strengthen domestic supply chains.
