Usman Salis
Nvidia continues to steal the spotlight on Wall Street. This Thursday, shares of Nvidia Corp. (NASDAQ: NVDA) climbed to fresh highs, briefly touching the $195.30 resistance level before settling at $193.06. The rally catapulted the company's valuation to a staggering $4.7 trillion, cementing its position as the backbone of the global AI revolution.
Chart Analysis: Breaking New Ground
Market data provider Barchart flagged this milestone, pointing out how Nvidia's explosive growth has reshaped not just the chip industry but the entire stock market landscape.
The candlestick chart reveals Nvidia approaching a critical technical inflection point. The stock tested the $195.30 resistance line on Thursday but pulled back slightly, though the move signals strong buying interest and sets up a potential retest. Since June, NVDA has surged from around $140 to $193, carving out a clean uptrend with consistently higher lows and higher highs. After consolidating mostly between $170 and $185 through September, the stock now appears ready for its next leg up. If it breaks cleanly above $195, the path to $200 opens wide, while $185 should hold as solid support on any pullback.
What's Driving the Rally?
Key factors behind Nvidia's surge:
- AI infrastructure demand keeps exploding as data centers, cloud providers, and AI labs scramble for high-performance GPUs
- Nvidia has blown past earnings expectations quarter after quarter, building tremendous investor confidence
- The company faces virtually no competition in cutting-edge GPU technology, making it the go-to supplier in the AI arms race
- Both retail traders and institutional money managers view Nvidia as the clearest way to bet on AI's future
What This Means for Investors
At $4.7 trillion, Nvidia's valuation has entered uncharted territory, sparking heated debates about whether this growth can last. The company's massive size means its moves now swing the entire Nasdaq and S&P 500, making it a key barometer for tech sector health. If the momentum holds, $200 becomes the next psychological magnet for traders. But any stumble could trigger a quick test of support around $185, revealing just how resilient the rally really is.
Usman Salis
