A massive breakout driven by AI
The semiconductor giant shows no signs of weakness. By crossing the symbolic $236 mark, Nvidia stock validated a major technical breakout from its previous range, confirming the strength of its current bull run. This surge propels the valuation of the company to stratospheric levels, consolidating its absolute dominance over the market.
This impressive rally is driven by aggressive accumulation from institutional investors. With a 3.7% jump in a single trading session, the stock displays a resolutely bullish momentum. Buyers are positioning themselves en masse, anticipating an upward move following the quarterly earnings report.
Indeed, on May 20, 2026, NVIDIA once again surprised the markets with its fiscal first quarter 2027 results. The semiconductor giant achieved a record revenue of $81.6 billion, up 85% year over year. Fueled by an insatiable demand for AI chips, its Data Center segment exploded to $75.2 billion.
Furthermore, with a net income approaching $43 billion and an adjusted EPS of $1.87, the company also announced a massive $80 billion share buyback program and multiplied its dividend by 25. These exceptional performances confirm the absolute dominance of NVIDIA in artificial intelligence and reinforce its status as the driving force of the tech sector. However, the stock experienced volatility and a retracement to $218 following the announcement.
Whales accumulate ahead of earnings: what to expect?
While the overall trend remains ultra positive, traders are closely monitoring support levels to anticipate any potential correction. After such an ATH, a retest of the top of the previous range at $213 would be completely normal. But given the buying pressure below $220, NVDA might well have already found its bottom.
The global demand for artificial intelligence chips acts as a massive fundamental catalyst. As long as tech giants continue to invest heavily in AI infrastructure, Nvidia will maintain its competitive edge. Order books are full and liquidity is flowing in, significantly reducing the risks of a sharp reversal in the short term.
How high can the Nvidia stock price soar?
The question now is whether this momentum can last. If the upcoming financial results confirm the explosion of AI related revenues, the stock could quickly seek new resistance levels. Conversely, the slightest disappointment could trigger massive profit taking.
From a technical perspective, the Fibonacci extension indicates a potential target at $269 in the coming weeks or months if it breaks $240. This would represent a potential upside of 20% from its current level.
Furthermore, on Bitfinex, a major long cluster is located at $213. Meanwhile on Hyperliquid, the trend leans more towards shorts with a major cluster to liquidate at $229. These two zones are the most important in the short term. And this also confirms the indecision in the market.
As the crypto market and traditional finance converge around technological themes, the performances of Nvidia dictate the overall sentiment. Investors must remain vigilant and adapt their risk management in the face of this volatility. Is this the ideal time to position oneself or should we wait for a lull before the next surge?
In any case, a crash below $213 remains unlikely. Meanwhile, any drop below $220 turns into smart money accumulation. For the short term, NVDA shares must hold $220 as support to target the first resistance at $229.
Sources:
Related Articles:
