Nvidia stock hits $164 as AI chip demand and China easing drive gains
Nvidia’s rally is backed not only by technical strength but also by powerful macroeconomic and geopolitical tailwinds
As of July 11, Nvidia stock is trading at $164.10, up 0.75% in the past 24 hours. This price reflects continued investor confidence amid the company's aggressive expansion into artificial intelligence, rising geopolitical leverage, and robust institutional demand.
Highlights
- Nvidia continues to trade in a strong uptrend, supported by robust AI demand and bullish technical signals.
- Recent geopolitical easing with China adds an additional tailwind for the stock.
- Key resistance lies at $170, with upside potential to $205 if momentum holds.
From a technical standpoint, Nvidia (NVDA) remains entrenched in a powerful bullish trend. The stock has consistently traded above its short- and medium-term moving averages. Most notably, the 20-day exponential moving average (EMA) is trending upward near $153, acting as a dynamic support line during recent pullbacks. The 50-day simple moving average (SMA) now sits at approximately $140, providing further confirmation of the upward momentum.
The Relative Strength Index (RSI) currently stands around 64, which is below overbought territory, implying that the rally has room to extend without triggering immediate profit-taking. Additionally, the Moving Average Convergence Divergence (MACD) shows a positive histogram with the MACD line remaining well above the signal line, reinforcing bullish sentiment. That said, trading volume has slightly declined over the past few sessions, signaling potential investor hesitation or consolidation.
Nvidia stock price dynamics (May 2025 - July 2025). Source: TradingView
Immediate resistance is seen at $170, which coincides with the upper channel trendline from the early June breakout. A sustained break above this could pave the way to $185. On the downside, the primary support rests at $150, followed by a stronger level at $130, near the 50-week moving average. If price breaches these supports, further downside to $97 remains possible, although current fundamentals and market momentum make that unlikely in the short term.
AI growth and easing US-China tensions favor NVDA
Nvidia’s rally is backed not only by technical strength but also by powerful macroeconomic and geopolitical tailwinds. The company remains at the center of the artificial intelligence boom. Demand for its H100 and upcoming Blackwell GPUs continues to outpace supply, with cloud service providers and enterprise software companies aggressively deploying Nvidia’s chipsets to scale AI models.
Recently, CNBC’s Jim Cramer highlighted how easing US-China tensions have added an unexpected catalyst to Nvidia’s valuation. While the U.S. government has maintained some restrictions on chip exports to China, there has been softening in rhetoric, particularly surrounding semiconductor collaboration and IP protection. As the world’s second-largest economy, any improvement in relations with China can provide Nvidia with added growth avenues, particularly in data center infrastructure and edge computing.
Moreover, the company’s continued expansion into international markets, such as its recent investment partnership in Saudi Arabia for AI development, signals long-term diversification. This comes at a time when the broader tech sector remains vulnerable to regulation and antitrust scrutiny. Nvidia’s ability to stay focused on hardware innovation while diversifying geopolitically adds a layer of resilience to its business model.
Nvidia likely to test $205 in coming weeks
Given current momentum, Nvidia is on track to test the $170 resistance level within the next 3 to 5 trading sessions. If this level is breached with strong volume confirmation, the next leg higher could see NVDA reach $185 quickly, with a projected price of $205 by late July. This scenario mirrors historical bars pattern behavior from late 2023, where similar RSI and MACD conditions led to a sharp 20% upside move.
Conversely, if macro headwinds or profit-taking emerge, a temporary retreat to $150 would be a healthy consolidation. Any breakdown below $130 would negate the current uptrend and could push shares back toward the $100 zone. However, barring unforeseen regulatory or geopolitical disruptions, the base case remains bullish.
On July 9, Nvidia became the first publicly traded company to briefly exceed a $4 trillion market cap, reflecting its dominant position in the AI sector. This milestone underscores strong investor confidence in Nvidia’s leadership in GPU technology essential for advanced AI applications.
