After months of subdued performance, shares in chip giant Nvidia are experiencing a renewed rally, nearing a crucial breakout from their narrow trading range. This resurgence, seen by market technicians as a bullish signal, saw the stock climb over 10 per cent across six sessions – its longest winning streak since October. Following a period of flatness since September 2025, shares closed Wednesday at $US182, just shy of the $US185 level technical traders are closely monitoring.
Jonathan Krinsky, chief market technician at BTIG, suggests sustained trading above $US185 could prompt significant capital inflow, reinforcing a positive long-term trend. Nvidia is a prominent chip giant, renowned for designing graphics processing units (GPUs) critical for various applications including gaming, professional visualisation, and data centres. These powerful chips are particularly vital for building the advanced infrastructure required for artificial intelligence. The broader market also provided tailwinds, with US stocks rallying Wednesday after a truce in the US-Iran conflict eased global economic concerns; Nvidia led S&P 500 gains. From a valuation standpoint, the stock appears healthier, trading at roughly 20 times next 12-month earnings, substantially down from its 10-year average of 36.
However, technicians also flag potential downside risks. Buff Dormeier, chief technical analyst at Kingsview Partners, cautions that a failure to sustain the rally, especially if shares fall below the $US170 support level, could signal further declines, potentially towards $US150. Both experts warn that making a definitive directional call remains challenging amidst broader macro pressures. The stock could just as easily continue trading sideways within its established range, with $US165 as short-term support and $US180 as resistance until a clear break occurs.
