Nvidia Hits Two-Month High After Five-Day Winning Streak Tops 10%

TradingKey - Nvidia's chip demand remains strong, driving its stock price to surge and likely challenge its all-time highs in August.

On August 5, Eastern Time, Nvidia ( NVDA) saw its stock price surge over 3% to close at $219.22, hitting its highest level since early June this year. Over the past five trading days, Nvidia's stock has continued to rebound, gaining a cumulative 10.47% and recovering most of its losses since May, primarily driven by tech giants continuously ramping up AI capital expenditure and SpaceX ( SPCX) securing massive new orders.

Recently, Microsoft ( MSFT ), Amazon ( AMZN ), Alphabet ( GOOG) and Meta ( META) and other large cloud service providers released their earnings reports. Their capital expenditures all exceeded expectations, and they pledged to further expand AI infrastructure investments, directly bolstering market confidence in the robust demand for Nvidia's GPUs and AI chips.

SpaceX's announcement that it will exclusively use Nvidia chips has significantly boosted market confidence in Nvidia's AI hardware moat, driving its stock price to extend gains. On Tuesday (August 4), Elon Musk publicly declared during SpaceX's first earnings call that SpaceX will use Nvidia chips 100% when building its AI computing infrastructure in the future.

From a technical analysis perspective, Nvidia's stock price has broken out of the descending channel formed since May, signifying a trend reversal and releasing a bullish signal. However, Nvidia's stock price pulled back yesterday after an intraday surge, leaving a long upper shadow, which indicates that selling pressure is intensifying. In the short term, there is a higher probability of a pullback to retest the upper boundary of the channel, corresponding to a stock price of around $200-$210.

Nvidia stock chart, Source: TradingView

If Nvidia's stock price can hold above $200, it is expected to continue its upward trend ahead of the earnings release, challenging its all-time high of around $236. Nvidia is scheduled to report its fiscal year 202 second-quarter financial results on August 26, with the market currently expecting quarterly revenue of approximately $91.8 billion, a year-over-year doubling. Historical experience shows that market capital often positions itself weeks ahead of earnings releases, driving up stock prices.

Currently, Nvidia's AI chip capacity for 2026 is virtually sold out. This has led several Wall Street investment banks, including Bank of America and Goldman Sachs, to maintain their 'Strong Buy' ratings, believing that the stock price will continue to hit new record highs, with target prices widely set in the $250 to $300 range.