When a major chipmaker delivers results that blow past Wall Street's expectations, the whole semiconductor sector tends to get a boost. That's exactly what happened Thursday as Nvidia Corp. (NVDA) climbed higher alongside its industry peers, fueled by impressive numbers from Micron Technology Inc. (MU) and friendlier-than-expected inflation readings.

Micron's Earnings Spark Chip Rally

Micron delivered the kind of quarter that makes analysts scramble to update their models. The memory chip specialist posted fiscal-quarter revenue of $13.64 billion, comfortably ahead of the $12.83 billion consensus estimate, according to MarketDash Pro. Adjusted earnings hit $4.78 per share, crushing the $3.95 forecast.

But the real excitement came from Micron's forward guidance. The company projected second-quarter revenue of $18.7 billion, give or take $400 million, smashing analyst expectations of $14.16 billion. Even more striking, Micron guided for adjusted earnings of $8.42 per share (plus or minus 20 cents), nearly double what Wall Street had penciled in.

That kind of confidence from a bellwether semiconductor player tends to lift all boats in the chip space, and Nvidia benefited from the rising tide.

Inflation Data Adds Fuel

Meanwhile, U.S. consumer prices rose just 2.7% year-over-year in November, landing well below economist expectations of 3.1%. The softer inflation reading helped lift broader markets, giving risk assets like chip stocks an extra tailwind.

There's a catch, though. The 43-day government shutdown delayed data collection into late November, right when holiday discounts were in full swing. The disruption also forced cancellation of October's CPI release, leaving gaps in the data that make it harder to gauge the true inflation trend. Economists expect price growth could accelerate again in December, potentially adding pressure on households already dealing with affordability concerns tied to import tariffs.

Technical Picture Shows Mixed Signals

Despite Thursday's bounce, Nvidia remains below its key moving averages, suggesting short-term headwinds persist. The stock sits 3.4% under its 20-day simple moving average, 6.5% below its 50-day SMA, and 4.5% under its 100-day SMA. That positioning shows the stock is having trouble building sustained upward momentum.

The RSI currently reads 36.97, a neutral level that suggests Nvidia isn't strongly overbought or oversold, though it's edging toward oversold territory. The MACD indicator sits below its signal line, another bearish signal in the near term. Still, if buying interest continues building, a rebound could materialize.

Support currently sits at $169.00, and a break below that level could signal further downside ahead. Resistance stands at $196.00, and clearing that barrier would be critical for any sustained recovery.

Zooming out, Nvidia has gained 35.19% over the past 12 months, showing solid long-term performance despite recent choppiness. The stock is trading at 69.7% of its 52-week range, positioning it closer to the highs than the lows. While that leaves room for upside, traders should watch for potential resistance as the stock climbs.

Nvidia shares were up 2.32% at $174.91 at the time of publication Thursday.