Nvidia Corp (NVDA) Stock: The AI King Reclaims Its Throne with 5-Month Peak

TLDR

Nvidia stock climbed to near 5-month highs, rising to $142.90 in premarket trading with gains in five of the past six trading days CEO Jensen Huang spoke at London Tech Week, announcing plans for an AI lab in the UK and partnerships to upskill developers The company rejoined the elite IBD 50 list after a hiatus, ranking #2 in the fabless semiconductor industry group Nvidia maintains 92% market share in AI data center chips for generative AI models, despite increased competition Revenue growth is decelerating but remains strong, with analysts expecting 54% growth to $199.7 billion this fiscal year

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Nvidia stock reached levels not seen since late January, trading at $142.90 in premarket sessions on Tuesday. The chipmaker has posted gains in five of the past six trading days.

The stock’s momentum comes as the broader tech sector continues its upward march. The S&P 500 maintains its position above the 6,000 level while the Nasdaq Composite has gained 2.6% year-to-date.

Nvidia shares have climbed approximately 7.5% so far this year. The stock closed Monday just 0.6% higher despite CEO Jensen Huang’s high-profile appearance at London Tech Week.

NVIDIA Corporation (NVDA)

Huang delivered a keynote alongside UK Prime Minister Keir Starmer. The CEO announced plans to establish an AI lab in the United Kingdom and partner with the country to train developers in AI technologies.

“The UK has one of the richest AI communities of anywhere on the planet, the deepest thinkers, the best universities,” Huang said at the conference. He praised the country’s position as having the third-largest AI capital investment globally.

The announcement represents another expansion move for Nvidia as it looks to strengthen its international presence. The company continues to build relationships with governments worldwide as AI adoption accelerates.

Market Position Strengthens

Nvidia has rejoined the IBD 50 list of high-performing growth stocks after a temporary absence. The company now occupies the final slot on this elite roster, which requires stocks to demonstrate strong profit growth and superior technical ratings.

The stock holds a 97 Composite Rating and boasts a perfect 99 Earnings Per Share Rating. Its Relative Strength Rating has climbed to 87 from 64 just four weeks ago.

Nvidia ranks second out of 39 stocks in the fabless semiconductor industry group. The company has gained ground in six of the last seven weeks, showing consistent upward momentum.

Technical analysis reveals the stock is in an early-stage consolidation pattern. It has an official buy point of $153.13, which also represents its all-time high reached on January 7.

Both the 21-day and 50-day moving averages are trending upward. The relative strength line has been climbing since late April, indicating outperformance versus the broader market.

Financial Performance Remains Robust

The company reported better-than-expected fiscal first-quarter results on May 28. However, its fiscal second-quarter revenue guidance fell short of analyst expectations.

Quarterly profit growth has been tapering from extremely high levels. First-quarter profit rose 33% after expanding 103% and 71% in prior quarters.

Fiscal 2024 earnings soared 294% while 2025 profit jumped 130%. Wall Street forecasts have been revised down to 45% growth for fiscal 2026, with 32% growth expected in fiscal 2027.

Revenue growth has also decelerated from unsustainable triple-digit rates. Fiscal first-quarter revenue increased 69% following gains of 94% and 78% in previous quarters.

Analysts project 52% revenue growth for the fiscal second quarter. Growth is expected to slow to 34% over the following four quarters as comparisons become more challenging.

AI Dominance Continues

Research estimates show Nvidia maintains a commanding 92% market share in AI data center chips for generative AI models. This dominance persists more than two years after the AI movement gained momentum with ChatGPT’s launch.

The company’s CUDA programming platform continues to serve as a competitive moat. This software optimizes the performance of Nvidia’s AI GPU chips, creating switching costs for customers.

Nvidia has succeeded its Hopper architecture with the newer Blackwell design. Future chip generations will deliver more processing power while consuming less energy.

Trade discussions between the US and China are taking place in London this week. Investors hope for productive talks that could ease chip export restrictions affecting the industry.

Analysts estimate Nvidia will grow revenue by nearly 54% to $199.7 billion this fiscal year, reaching $250.8 billion the following year.

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