NVIDIA Shares Show Strong Growth Potential Amid Positive Technical and Fundamental Analysis

Technical Analysis

NVIDIA (NVDA) closed June 18, 2025, at $145.48, up 0.94%. The daily price range ($143.12–$145.62) shows moderate intraday volatility, supported by an ATR of 2.68. The RSI at 61 signals mild bullish momentum without being overbought. Both the 50-day ($124.54) and 200-day ($127.94) moving averages lie well below the current price, confirming a sustained uptrend. The MACD at 5.86 suggests strong upward momentum over the past three months. Volume (160 million) trails the 3-month average (251.55 million), indicating less trading activity but not a bearish signal. Immediate support is around $139.19 with a stop-loss near $139.98. Absence of a defined resistance level implies further upside potential at least toward the yearly high of $153.13. For the next trading day (June 20), stability above support with possible continuation toward $148 is probable. Weekly outlook remains positive barring macro volatility, targeting the $150–$155 zone as intermediate resistance.

Fundamental Analysis

NVIDIA’s market capitalization of $3.55 trillion places it among the most valuable global technology firms. TTM EPS of $3.10 combined with a P/E ratio near 47 reflects strong growth expectations, albeit with valuation premiums typical of a leading AI and GPU stock. The negligible dividend yield of 0.03% (TTM) indicates the firm prioritizes reinvestment and capital appreciation over income. The discounted cash flow valuation of about $145.60 aligns closely with the current market price, suggesting the stock is reasonably valued intrinsically at present levels. Analyst consensus favors a strong buy/buy (58 out of 79 ratings), with price targets averaging $173.33, implying approximately 19% upside potential over the next 6–12 months. Upcoming earnings on August 27 and next dividend on July 3 add event-driven catalysts.

Recent news highlights NVIDIA’s expanding ecosystem via collaboration with Tech Soft 3D on OpenUSD and its Omniverse platform, reinforcing its leadership in AI-driven simulation and industrial applications. This partnership strengthens NVIDIA’s competitive moat, supporting long-term secular growth driven by AI adoption, digital twins, and platform lock-in effects.

Intrinsic Value and Long-Term Investment Potential

The DCF valuation near current price suggests fair market pricing without significant overvaluation or undervaluation. NVIDIA’s dominant position in AI hardware, software platforms, and increasing real-world adoption supports robust revenue and earnings growth profiles. The synergy between its GPU technology, AI frameworks, and simulation platforms like Omniverse sustains durable competitive advantages. While valuation multiples are elevated due to growth premium, continued innovation, expanding TAM (total addressable market), and ecosystem strength underpin the long-term intrinsic value. Investors focusing on multi-year horizons might view the stock as a core growth holding, balancing high returns against cyclicality and valuation risks.

Overall Evaluation

NVIDIA exhibits a strong technical setup characterized by upward momentum, well-supported price levels, and healthy moving average trends. Fundamentals justify a premium valuation reflecting growth leadership and unique market positioning in AI and simulation sectors. With intrinsic value close to market price and growth catalysts in place, the stock shows compelling long-term growth potential. Near-term price action is likely to remain constructive with above-average support levels and no immediate resistance. Given these factors, NVIDIA qualifies as a Buy candidate for growth-oriented investors while trading in the $140-$145 range, on the premise of continued secular AI-driven expansion and robust platform adoption.