Stay updated with the latest stock market news and insights
Weekly insights + SMS alerts
NVIDIA Corp. (NVDA) stock edged higher in Thursday premarket trading as improving risk appetite lifted technology stocks, with Nasdaq futures rising 1.35% and S&P 500 futures gaining 0.83%.
The chipmaker remains a focal point of the artificial intelligence investment theme, as analysts and market commentators increasingly point to sovereign AI initiatives, persistent supply constraints, and robust infrastructure spending as key drivers of its next phase of growth.
CNBC's Jim Cramer said on Monday that NVIDIA's growing business with sovereign nations could reduce investor concerns about its dependence on a small group of hyperscale customers.
He said governments are buying NVIDIA chips for domestic AI infrastructure projects and are not focused on quick returns, unlike some commercial buyers.
Cramer said sovereign AI already accounts for about 14% of NVIDIA's business and could become more important as projects move forward.
He said demand from countries including Singapore, India, Japan, Germany, Taiwan, Israel, Qatar, the United Arab Emirates, and Saudi Arabia can help lessen NVIDIA's reliance on major cloud providers.
Wedbush Securities semiconductor and hardware analyst Matt Bryson told CNBC on Wednesday that NVIDIA remains undervalued because it is still the biggest beneficiary of AI demand.
"At some point we're going to wake up and it'll feel like we saw with Micron a few months back, where they gave a great quarter and it just didn't react. And then all of a sudden wake up a few weeks later and it's up 50%," Bryson said.
He said the broader AI investment cycle remains strong and continues to support demand for companies tied to AI infrastructure.
Bryson said NVIDIA's products remain supply-constrained, and the company has built strong supply-chain positioning for 2026, 2027, and 2028.
He also said server vendors such as Super Micro Computer, Inc. (SMCI) are largely shipping NVIDIA-based products, which reinforces NVIDIA's central role in the AI hardware ecosystem.
KeyBanc Capital Markets analyst John Vinh said NVIDIA remains his favorite AI chip stock and called it "hands down" the best-in-class player in the sector.
He said no major merchant silicon rival is likely to gain meaningful traction against NVIDIA soon, and he likes the stock's risk-reward at current levels.
NVIDIA is trying to stabilize after its pullback from the May swing high. The key question now is whether buyers can defend the mid-$190s while the stock moves back toward the low-$200s.
At $203.01, NVIDIA trades below its short-term moving averages. The stock is 6.6% below its 20-day simple moving average of $217.20. It is also 1.4% below its 50-day simple moving average of $205.71.
However, the longer-term setup still looks stronger. NVIDIA remains 4.3% above its 100-day simple moving average of $194.38. It is also 7.3% above its 200-day simple moving average of $189.02.
The broader trend still leans constructive. The 20-day average remains above the 50-day average. The 50-day average also remains above the 200-day average. That pattern reflects the golden cross that formed in June 2025.
Still, near-term momentum has cooled. The stock is stuck between resistance near $205 to $217 and support in the $190s. The MACD is below its signal line, while the histogram is negative. That suggests the latest upswing is losing steam.
In plain terms, NVIDIA needs to reclaim key moving averages to rebuild momentum. Until then, traders may watch $217 as resistance and $194.50 as support.
NVDA Stock Price Activity: NVIDIA shares were up 1.29% at $203.00 during premarket trading on Thursday, according to market data.
NVIDIA stock has gained nearly 8% year to date, lagging the Nasdaq-100 Index's 13% advance and the PHLX Semiconductor Index's 72% surge.
Real-time alerts on price moves, news, and trading opportunities.
Join 20,000+ investors. No spam, ever.
