$160 or $200? Where’s NVDA Stock Moving Next After 85% Rally?

Key Insights:

• NVDA stock trades at a make-or-break junction, with a 10% swing chance in either direction.
• NVDA gained momentum after former President Donald Trump announced plans to grant Nvidia licenses to sell its H20 chips in China.
• Bernstein analyst Stacy Rasgon called it a key growth catalyst, highlighting Nvidia’s edge in the AI semiconductor space.

Nvidia stock (NASDAQ: NVDA) closed flat this week. It traded around its all-time high levels of $174. Since the lows of $94 in April, the NVDA has already been up by 80% within just three months.

As the earnings season begins, market analysts find themselves at a crossroads of what’s coming next.

Can NVDA Stock Price Rally Continue?

With the Trump tariff fears subsiding, the Nvidia stock has increased in July, gaining 12% this month. This comes on top of the 17% upside in NVDA during June. Technical charts suggest the stock price is overheated, with the possibility of a pullback.

The weekly chart shows Nvidia has decisively broken above its previous consolidation range. The stock is now trading well above all major exponential moving averages. As we can see on a multi-year chart, Nvidia stock has been riding a powerful uptrending channel.

A breakout from here at $175 could set the stage for the stock rally to $200. However, any rejections from the current levels could push it to the first immediate support at $160. Further selling pressure and scenarios like a market crash could make it even lower to $110, which seems unlikely now.

Nvidia stock has recently burned the shorts with its sharp rally. However, investors should be cautious, as NVDA is already trading in the price discovery zone.

NVDA Stock Rally to Continue on US-China Trade Deal, Says Bernstein

Nvidia stock rose after Donald Trump announced plans to grant the company licenses to sell its H20 chip in China. The development comes shortly after Nvidia became the first company to reach a $4 Trillion valuation earlier in July.

Stacy Rasgon, Senior Analyst at Bernstein, believes it could be a major catalyst for the Nvidia stock. In his recent interview with Yahoo Finance, Rasgon said:

The primary driver behind the surge is continued AI investment from major clients like Microsoft, Meta Platforms, and Amazon. This makes up the bulk of Nvidia’s sales.

The company maintains a competitive edge with its industry-leading GPUs and proprietary Compute Unified Device Architecture (CUDA) software. It offers Nvidia a technological advantage.

Robust Performance by AI Chip Firm

Nvidia’s latest results and NVDA stock performance have silenced many skeptics. In its recent quarter, the company reported a 76% year-over-year increase in data center revenue. This was mainly due to the strong demand for its Blackwell GB200 chips.

New growth drivers are emerging, with Saudi Arabia’s Humain reportedly planning to purchase over 200,000 AI GPUs. This potentially generates $15 Billion in sales, while the UAE has a deal for up to 500,000 units.

Even without sales to China, Nvidia noted that nearly 100 AI factories are under development globally. Besides, hyperscalers deploy 1,000 GB200 NVL72 racks per week, each containing 72,000 Blackwell GPUs.