NVIDIA Secures Bullish Momentum with Strong Fundamentals and Growth Potential Amid Market Conditions

Technical Analysis

NVIDIA (NVDA) closed at $143.96 on June 10, 2025, up 0.93% from the prior session, with intraday price ranges between $141.53 and $144.29. The Relative Strength Index (RSI) at 65 signals the stock is approaching overbought territory but remains below critical overbought levels (above 70). The 50-day moving average of $119.03 and 200-day moving average of $127.30 both lie well below the current price, confirming a sustained bullish momentum over the medium to long term. The 3-month MACD reading of 8.72 further supports upward momentum. Average True Range (ATR) at approximately $3.06 suggests moderate daily volatility.

Support levels exist near $139.19 with a stop-loss positioned at $139.35, indicating technical floors close to current price levels. Absence of immediate resistance within the presented range implies room for an incremental upside. However, volume on June 10 was 152.85 million, below the average volume of 266.37 million, reflecting relatively muted trading activity that may temper short-term moves.

For the next trading day (June 11), technical indicators suggest a continuation of the modest upward trend, supported by strong moving averages and positive momentum oscillators. For the upcoming week, barring any unexpected macroeconomic shocks or negative newsflow, the stock may trend higher towards the mid-$150 range but could face profit-taking pressure near the yearly high of $153.13.

Fundamental Analysis

NVIDIA’s market capitalization stands at $3.51 trillion, affirming its status as a mega-cap technology leader. Its trailing twelve months (TTM) earnings per share (EPS) of $3.10 yields a price-to-earnings (P/E) ratio of 46.44, indicating elevated valuation multiples typical in fast-growing tech sectors but demanding sustained growth to justify. The dividend yield is minimal at 0.03% (TTM basis), reflecting the company’s growth orientation rather than income generation.

The discounted cash flow (DCF) valuation at $143.69 per share closely aligns with the current market price ($143.96), suggesting the market is efficiently pricing intrinsic value near present levels. Analyst consensus forecasts a median price target of $175 with a high of $190, highlighting substantial upside potential over a 6–12 month horizon driven by NVIDIA’s leadership in AI and semiconductor innovations.

Recent news regarding the partnership with Hewlett Packard Enterprise to develop a next-generation AI supercomputer illustrates ongoing strategic investments in AI infrastructure. This collaboration strengthens NVIDIA’s competitive moat amid intensifying AI chip demand and further diversification of its data center revenue base.

Macro factors include expectations of two Federal Reserve rate cuts later this year conditioned on CPI inflation prints, which could provide a supportive financial environment for growth equities such as NVIDIA. However, caution remains warranted as high valuation multiples expose the stock to volatility from shifts in interest rates or global chip supply cycles.

Intrinsic Value and Long-Term Investment Potential

NVIDIA’s current trading price approximates its intrinsic value based on discounted cash flow models. The company’s entrenched leadership in GPUs, AI accelerators, and data center solutions positions it well for sustainable earnings growth over the next decade. Industry tailwinds in artificial intelligence, cloud computing, autonomous vehicles, and gaming underpin a robust long-term growth trajectory. Challenges include competitive pressures, semiconductor supply constraints, and macroeconomic uncertainties.

Long-term investors are likely to benefit from NVIDIA's secular growth in AI-driven markets and ongoing innovation pipeline, despite near-term valuation premiums. The negligible dividend yield indicates capital gains as the primary return source, appropriate for growth-oriented portfolios.

Overall Evaluation

NVIDIA exhibits strong technical and fundamental characteristics with robust momentum, solid earnings growth, and promising strategic developments. The stock trades near its intrinsic value with significant upside as reflected by analyst target prices and bullish institutional analyst sentiment (57 buys/strong buys vs. 18 holds/sells).

Given the current setup — strong bullish technical indicators, high but justified valuation, and positive macro and company-specific catalysts — NVIDIA can be classified as a Buy candidate for investors with a growth orientation and moderate tolerance for valuation volatility. The modest near-term technical risks are outweighed by strong medium-to-long-term fundamental prospects and AI-driven market leadership.