NVDA presents a compelling 'buy the dip' opportunity into the 50-day SMA (~$183) ahead of its Q4 earnings on Feb 25, a period historically associated with pre-announcement run-ups. Fundamentals remain pristine with the Blackwell cycle driving 90%+ revenue growth, and the P/E of ~46 is trading at a discount to its 10-year average. The long-term uptrend is intact, and the current pullback to support offers a high-reward entry to target a re-test of highs driven by continued hyperscaler demand.
NVIDIA (NVDA) is well-positioned for upside due to its dominant role in AI and semiconductors, with a long-term analyst target of $300 suggesting significant growth potential over the coming weeks. The current sideways market regime with VIX in deep contango indicates complacency and potential for risk-on moves, supporting a breakout above resistance at $189-$192. Recent price action near $185.61 is consolidating within a horizontal channel, and a resolution upward could be catalyzed by positive sector rotation back into growth stocks like NVDA, especially with stable credit conditions and no immediate macro headwinds.
Despite recent pullbacks, NVDA maintains strong AI positioning with major customers like Meta and Microsoft continuing heavy AI spending. Bank of America maintains a $190 price target (63% upside), citing long-term dominance in AI chips and potential to overcome trade challenges. Positive product feedback from CES 2026 suggests innovation pipeline remains strong.
Short-term technical momentum has flipped bearish with a daily MACD crossover and RSI dropping below 50, signaling potential distribution. The broader market is witnessing a rotation out of growth/tech (QQQ lagging DIA), which creates sector-level headwinds. If the immediate support at $178 fails, the stock risks a deeper correction toward the 200-day SMA at $166, filling the liquidity gap below current levels.
Technical indicators show a neutral to slightly bearish trend, with a falling RSI and volume divergence potentially signaling weakness if support at $183 breaks. A developing head and shoulders pattern could lead to further downside toward $173 or even $167 if broader market rotation out of growth stocks persists. Mixed macro signals, including QQQ underperformance versus DIA, might pressure tech-heavy names like NVDA in the short term.
Market rotation out of growth/tech is pressuring NVDA as the sideways market regime favors sector rotation. Competition from DeepSeek threatens AI dominance while trade tensions create tariff risks. The stock has already dropped 20% YTD with no technical support evident, suggesting continued downside potential in this risk environment.
NVDA presents a compelling 'buy the dip' opportunity into the 50-day SMA (~$183) ahead of its Q4 earnings on Feb 25, a period historically associated with pre-announcement run-ups. Fundamentals remain pristine with the Blackwell cycle driving 90%+ revenue growth, and the P/E of ~46 is trading at a discount to its 10-year average. The long-term uptrend is intact, and the current pullback to support offers a high-reward entry to target a re-test of highs driven by continued hyperscaler demand.
NVIDIA (NVDA) is well-positioned for upside due to its dominant role in AI and semiconductors, with a long-term analyst target of $300 suggesting significant growth potential over the coming weeks. The current sideways market regime with VIX in deep contango indicates complacency and potential for risk-on moves, supporting a breakout above resistance at $189-$192. Recent price action near $185.61 is consolidating within a horizontal channel, and a resolution upward could be catalyzed by positive sector rotation back into growth stocks like NVDA, especially with stable credit conditions and no immediate macro headwinds.
Despite recent pullbacks, NVDA maintains strong AI positioning with major customers like Meta and Microsoft continuing heavy AI spending. Bank of America maintains a $190 price target (63% upside), citing long-term dominance in AI chips and potential to overcome trade challenges. Positive product feedback from CES 2026 suggests innovation pipeline remains strong.