Nvidia Stock Soars Near Record High: What's Driving the Rally?

NVIDIA Corp NVDA is continuing its remarkable run Wednesday, with shares climbing 2.6% to $151.74, near a new all-time high. The stock’s recent run completes a full recovery from a 17% drop in January, initially sparked by fears that China’s DeepSeek AI could challenge Nvidia’s market dominance.

What To Know: Nvidia’s rebound in recent weeks has been fueled by a significant easing in U.S.-China trade tensions and a stellar first-quarter earnings report on May 28.

The company announced earnings per share of 81 cents on a staggering $44.06 billion in revenue, a 69% year-over-year increase, blowing past analyst expectations and reaffirming its leadership in the AI chip sector.

Adding to the bullish sentiment, Nvidia’s stock is on the verge of a “golden cross,” a technical pattern where the 50-day moving average surpasses the 200-day average, often signaling a sustained uptrend. Historically, this pattern has preceded massive rallies in Nvidia’s stock, with past occurrences leading to triple and even quadruple-digit percentage gains.

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Despite recent allegations that DeepSeek has been supplying Nvidia’s advanced chips to China’s military, circumventing U.S. export controls, investors remain focused on the company’s explosive growth, which continues to vastly outpace competitors like Intel Corp.

Analyst Updates: Following its strong earnings report, Wall Street has shown overwhelming confidence in Nvidia’s continued growth. In a flurry of updates on May 29, numerous firms reiterated their positive ratings and raised price targets.

Notably, Truist Securities increased its target to $210, and Rosenblatt lifted its target to $200. The bullish sentiment has continued into June, with Barclays raising its price target to $200 on June 17 while maintaining an “Overweight” rating.

The vast majority of analysts maintain a “Buy” or equivalent rating, with many price targets suggesting a potential upside of 15% to over 35% from its current highs.

According to data from Benzinga Pro, NVDA has a 52-week high of $153.13 and a 52-week low of $86.62.

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How To Buy NVDA Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in NVIDIA’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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