NVIDIA Corp (NASDAQ:NVDA) shares are in the spotlight Tuesday after hitting new all time highs in early trading. Here’s what you should know.
- NVIDIA stock is trading near recent highs. What should traders watch with NVDA?
Wells Fargo's View Remains Strongly Positive
Nvidia stock is slipping Tuesday amid a broader pullback in chip stocks, which have outperformed dramatically year-to-date. Nvidia shares initially traded up on Tuesday, hitting new all-time highs after Wells Fargo reiterated its Overweight rating and lifted its price target from $265 to $315.
The pullback suggests traders are taking profits following the recent run, even as the analyst community continues to lean bullish on the company's long‑term AI positioning.
Analyst Aaron Rakers said demand for compute capacity continues to exceed supply, and that Nvidia's ability to scale gigawatts of AI infrastructure is a key driver of its data center revenue, CNBC reported. The analyst pointed to the Blackwell platform as a major contributor to future growth and noted that Wells Fargo expects the broader AI pipeline to surpass $1 trillion by 2027.
Rakers also highlighted additional upside from offerings such as Groq 3 LPX, a rack‑scale AI inference accelerator designed for Nvidia's Vera Rubin supercomputing architecture. The Wells Fargo analyst argued that Nvidia still looks attractively valued, even after an 18% year‑to‑date gain, and said the company remains one of the strongest long‑term growth stories in large‑cap semiconductors.
Nvidia’s Uptrend Is Intact, But The Tape Is Testing Conviction
Even with Tuesday's dip, NVDA remains extended above key trend gauges. It's trading 6.7% above the 20-day SMA ($204.69) and 18.1% above the 200-day SMA ($184.96), which keeps the bigger-picture uptrend in control. The 20-day SMA remains above the 50-day SMA, and the golden cross formed in June 2025 and continues to reinforce the longer-term trend bias.
Momentum is where the near-term debate lives. MACD is above its signal line and the histogram is positive, pointing to improving momentum versus the prior downswing. This means the stock may be wobbling with the market, but the internal momentum picture suggests the sellers aren't fully in charge.
Still, price is close enough to matter. NVDA is trading just under its 52-week high of $222.30, a zone that can turn into overhead supply as traders take profits into strength. If the pullback deepens, the most actionable downside reference from the provided levels is support near $194.50, which lines up closely with the 50-day EMA of $194.66. That's the line in the sand where dip-buyers typically show up, and where bulls want the chart to hold if the broader market keeps leaning defensive.
- Key Support: $194.50 — closely aligns with the 50-day EMA ($194.66), a common area where trend buyers look for support
NVDA Shares Are Dipping
NVDA Price Action: Nvidia shares were down 0.43% at $218.49 at the time of publication on Tuesday. The stock hit all-time highs of $223.75 before pulling back, according to Benzinga Pro.
Image: JRdes/Shutterstock
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