Weekly forecast: Nvidia hits all-time high above $158
Nvidia surges past Microsoft in global market cap rankings
Nvidia (NASDAQ: NVDA) continues to cement its position as the dominant force in the artificial intelligence chip market, a leadership role that has driven its meteoric rise to the top of the global market cap rankings.
The stock hit a new all-time high above $158 on Friday, buoyed by optimism following U.S. Commerce Secretary Howard Lutnick’s announcement of a finalized trade agreement between the U.S. and China.
While specific terms of the deal remain undisclosed, investors are hopeful that it could soften the current restrictions on exporting advanced AI chips. The news provided a substantial boost to both Nvidia and the broader market, adding to Nvidia’s bullish momentum this month. Lutnick also hinted that more trade agreements with other countries are in progress, which could further support Nvidia’s global growth trajectory. Nvidia’s ability to ride these geopolitical waves has positioned it as a cornerstone of the modern tech rally.
Nvidia’s Market Surge Outpaces Rivals
Throughout June, Nvidia shares have posted exceptional gains, pushing the chipmaker past Microsoft (MSFT) in the race for the world’s most valuable publicly traded company. The battle between the two giants intensified after Nvidia’s impressive first-quarter earnings release on May 28, which sparked a fresh wave of investor enthusiasm. Nvidia’s stock has now gained over 60% since the market’s recent low, dramatically outperforming key benchmarks like the NASDAQ 100.
Nvidia price chart. Source: TradingView
Analysts and market participants credit Nvidia’s surge to the relentless investment in AI infrastructure, where demand for Nvidia’s GPUs consistently outpaces available supply. The company’s cash reserves have also ballooned to over $53 billion, representing a 24% increase from the previous quarter and providing a formidable war chest for future growth and innovation. Nvidia’s aggressive scaling in AI-centric sectors positions it as a long-term market leader with substantial upside potential.
Technical Breakout Reinforces Bullish Outlook
From a technical analysis perspective, Nvidia’s chart remains decisively bullish, signaling strong ongoing momentum. The formation of a “golden cross,” where the 50-day exponential moving average (EMA) crossed above the 200-day EMA, serves as a powerful buy signal that typically precedes further gains. Nvidia recently broke through the key $155 resistance level, triggering an impulsive breakout phase that many traders interpret as the start of another bullish leg.
Despite the stock’s impressive rally, analysts remain divided: some advocate for continued accumulation, while others urge caution given Nvidia’s lofty valuation. However, the consensus among momentum traders is that any significant pullback could offer an attractive entry point rather than a reversal of trend. With its dominant market position, strong financial foundation, and favorable macroeconomic tailwinds, Nvidia appears well-positioned to continue leading the AI revolution.
Recently we wrote that Nvidia stock is trading at $157.75, up 1.8% in the past 24 hours.
