Nvidia stock rises 1.7% on AI chip demand and earnings momentum
The company reported fiscal Q1 revenue of $44.06 billion, marking a 69% year-over-year surge
As of June 3, Nvidia stock is trading at $137.38, up 1.7% intraday.
The stock has staged a strong recovery in recent weeks and is now trading just below a key resistance level of $143.
Highlights
- NVDA has exceeded $137, up 1.7%, supported by a bullish flag breakout and golden cross formation.
- Strong AI chip demand and record earnings are reinforcing investor confidence despite China-related headwinds.
- Technical indicators point to a potential rally toward $150, with support holding at $130.
Nvidia has successfully broken out of a bullish flag pattern that had been forming since mid-May, indicating a continuation of its previous uptrend. Technical momentum is reinforced by the emergence of a golden cross pattern — where the 50-day moving average (now at $126.40) has crossed above the 200-day moving average (currently at $122.85). This is traditionally viewed as a strong bullish signal for medium-term price action.
Volume has been rising steadily since the breakout, suggesting strong institutional buying support. The Relative Strength Index (RSI) is currently hovering around 68, nearing the overbought threshold but not yet signaling exhaustion. This leaves room for further upside in the short term. On the downside, immediate support lies at $130, followed by a stronger demand zone around $123, which coincides with the 200-day moving average. These levels will be crucial for maintaining the current bullish structure.
NVDA stock price dynamics (April 2025 - June 2025). Source: TradingView
Additionally, the MACD (Moving Average Convergence Divergence) has just turned positive, with the MACD line rising to 3.42 while the signal line sits slightly lower at 3.05, following a bullish crossover in the final week of May. This crossover is often seen as a confirmation of a bullish trend shift and is now supported by increasing histogram bars, indicating strengthening momentum. Momentum oscillators also show improving conditions, with the stochastic oscillator currently reading 74.2 — elevated but still below the extreme overbought threshold of 80, suggesting further room to run before a reversal is likely.
Strong AI demand amid geopolitical challenges
Nvidia’s bullish technical setup is strongly supported by fundamentals. In its latest earnings release, the company reported fiscal Q1 revenue of $44.06 billion, marking a 69% year-over-year surge. This growth is almost entirely driven by insatiable demand for its AI and data center products, particularly its H100 and upcoming B100 chips, which are essential for training large language models and generative AI systems.
However, Nvidia is not without its challenges. A major concern weighing on sentiment earlier this year was the U.S. export ban on high-end AI chips to China. In Q1, the company recorded a $4.5 billion charge associated with excess H20 inventory after these export restrictions were enacted. Despite this, Nvidia has managed to diversify its client base, including expansion into the Middle East and strong demand from hyperscalers in the U.S. and Europe.
Recent developments have further improved sentiment. Nvidia announced a partnership with Saudi Arabia’s AI company, which could help mitigate the impact of the China restrictions. Moreover, expectations of rate cuts by the Federal Reserve later this year have boosted the entire tech sector, including semiconductors. Nvidia has benefited significantly from this rotation back into growth and AI-related equities.
Targeting $150 with potential for $160
Given the alignment between strong technical signals and bullish fundamentals, Nvidia stock is well-positioned to continue its upward trajectory. The short-term price forecast targets a move toward $143 in the next 3–5 trading sessions. A break above this level, especially on strong volume, could open the door to a move toward $150, which represents the next psychological and technical resistance.
If the bullish sentiment across the tech and AI sectors persists, Nvidia could push as high as $160 by late June, especially if macroeconomic conditions remain favorable and AI infrastructure demand continues to accelerate. On the downside, a break below $130 would negate the short-term bullish setup and expose the stock to a potential pullback to the $123 level.
Nvidia’s dominance in GPU and data center markets continues to drive bullish sentiment, especially as AI workloads surge globally. A major multi-year deal with a Saudi AI firm positions Nvidia for long-term growth and offers a strategic hedge against Chinese export restrictions.
