Nvidia stock rallies 1.3% as AI chip demand soars
Nvidia’s hardware is powering generative AI applications, data center expansions, and high-performance computing platforms
As of July 7, Nvidia stock is trading at $159.34, up 1.3% in the past 24 hours.
This price marks a continuation of the company's strong bullish momentum, propelling it to a fresh all-time high.
Highlights
- Nvidia broke above key resistance at $153.13, confirming strong bullish momentum with support now forming at $150.
- The stock is benefiting from unprecedented AI chip demand, with 2025 Blackwell production already sold out.
- Analysts project continued gains, with short-term targets as high as $180 by month-end.
The recent breakout above the key resistance level of $153.13 has turned that threshold into a new support zone, solidifying Nvidia's uptrend. This price action suggests strong institutional buying interest and a market consensus that the company’s growth trajectory is far from over.
Nvidia now has initial support levels at $153 and $150, which serve as key pivot points in the event of a short-term pullback. Below that, $130 represents a deeper correction level, although the current market structure indicates that such a move is unlikely in the near term unless there is a broader market selloff. The stock remains well above its 50-day and 200-day moving averages, both of which continue to trend upward, confirming a strong long-term uptrend.
Nvidia stock price dynamics (May 2025 - July 2025). Source: TradingView
Technical indicators further reinforce this bullish stance. The Relative Strength Index (RSI) is hovering near 70, which traditionally suggests the stock is entering overbought territory. However, in powerful uptrends, RSI can remain elevated for extended periods without a major reversal. Moreover, the formation of a golden cross—where the 50-day moving average crosses above the 200-day moving average—adds a strong technical signal that the rally could extend into the third quarter.
Market context: AI dominance fuels Nvidia’s growth engine
The broader market environment continues to be supportive of Nvidia’s rally. Investor enthusiasm for artificial intelligence (AI) technologies is at a peak, and Nvidia stands at the center of this surge. The company’s recent launch of its Blackwell architecture and RTX 50 series GPUs has captured market attention, with reports indicating that all 2025 production of Blackwell chips has already been sold out. This unprecedented demand reinforces Nvidia’s position as the leader in AI hardware.
Loop Capital recently raised its price target for Nvidia to $250, citing the company's unassailable dominance in the AI space. Other analysts have similarly boosted their outlooks, pointing to Nvidia's massive lead over competitors in terms of both technological capability and market penetration. This optimism comes amid a broader Nasdaq rally, which is now approaching the psychologically significant 20,000 mark, a sign of bullish sentiment across the technology sector.
Nvidia’s hardware is powering generative AI applications, data center expansions, and high-performance computing platforms across multiple industries. From defense and cybersecurity to medicine and media, demand for Nvidia’s GPUs is rising rapidly. Importantly, Nvidia is also playing a growing role in developing sovereign AI infrastructure globally, particularly in markets outside the U.S., offering a major runway for international expansion.
Targeting $180 with upside potential
Based on the technical and fundamental landscape, Nvidia stock appears poised to continue its upward trajectory. Assuming continued momentum and stable macroeconomic conditions, the stock could reach the $180 level by the end of July. This forecast aligns with projections from market analysts and independent forecasters, including Longforecast.com, which sees Nvidia rising to $180 in July and $203 in August.
Short-term volatility remains a possibility, particularly as the stock’s RSI signals overbought conditions. In such cases, pullbacks to $153 or $150 would represent attractive buying opportunities for investors looking to enter the stock. Barring any major negative catalysts, Nvidia is likely to remain a market leader throughout the second half of 2025.
Nvidia’s latest rally is fueled by strong demand for its AI chips and strategic partnerships with CoreWeave and Hewlett Packard Enterprise, reinforcing its leadership in the AI ecosystem. Despite insider selling by CEO Jensen Huang, investor confidence remains high as the company expands globally with initiatives like its Nemotron language model.
