NVIDIA Shows Strong Technical Momentum and Solid Fundamentals: Buy for Growth Investors

Technical Analysis

NVIDIA (NVDA) closed at $142.63 on June 9, 2025, up 0.64% from the prior session. The stock traded within a narrow intraday range between $141.94 and $145.00, showing moderate bullish momentum. The 14-day RSI at 62 signals a mildly overbought condition but leaves room for upside before reaching typical overbought thresholds (70+). NVDA’s price remains comfortably above its 50-day moving average ($118.40) and 200-day moving average ($127.22), confirming sustained medium- and long-term upward momentum. The positive MACD (3-month) reading of 9.31 corroborates this momentum. Average True Range (ATR) of $3.18 indicates moderate intraday volatility. Key near-term support stands at $139.19, with the stop-loss level around $137.27; no explicit resistance is identified, although the 52-week high at $153.13 could act as a psychological target.

For the next trading day (June 10), given the positive price action, absence of supply-side resistance, and strong technicals, a continuation of mild upward movement or consolidation above support around $140-$142 appears likely. Over the coming week, the steady volume—albeit below average—and broad market participation suggest cautious but sustained upward pressure, potentially retesting $145 to $150 zones as analysts’ target lows suggest.

Fundamental Analysis

NVIDIA’s market capitalization stands at approximately $3.48 trillion, reflecting its status as a mega-cap technology leader. The trailing twelve months (TTM) earnings per share (EPS) are $3.10, with a price-to-earnings (P/E) ratio of 46.01. This valuation multiplicity reflects high growth expectations, consistent with the firm’s dominant role in AI, GPU technologies, and semiconductor innovation. The PEG ratio discussed in recent coverage hints that while valuation is rich, it may be justified by sustained earnings growth. The discounted cash flow (DCF) intrinsic value is estimated at about $143.01, nearly in line with the current price, indicating that the stock is close to fairly valued intrinsically at present.

The dividend yield based on TTM data is negligible at 0.03%, consistent with NVIDIA’s growth-oriented capital allocation strategy prioritizing reinvestment and expansion over income distribution. The upcoming earnings announcement on August 27, 2025, will be a critical catalyst for revaluation. Consensus analyst targets range from $150 (low) to $190 (high), with a median near $175, highlighting the broad bullish sentiment and the potential for upside. The substantial buy and strong buy ratings (57 out of 75 analysts) reflect confidence in NVIDIA’s growth trajectory and market positioning.

Recent news highlights further reinforce NVIDIA’s strong growth prospects, particularly the acceleration of AI-related demand and leadership in the semiconductor supply chain. The company’s involvement in emerging gaming hardware markets amidst heightened competition implicates new revenue streams. Despite a trend of retail investors favoring ETFs over single stocks, institutional and sector-specific enthusiasm for NVIDIA remains robust.

Intrinsic Value and Long-Term Investment Potential

With a DCF valuation converging around $143 and the stock currently near $142.63, the intrinsic value suggests fairly priced shares with modest near-term upside. Given NVIDIA’s dominant position in high-growth sectors such as artificial intelligence, accelerated computing, and data center technologies, its long-term investment thesis remains compelling. The company’s ability to sustain revenue and earnings growth over several years, combined with strategic innovation and industry leadership, supports a durable intrinsic value trajectory likely to appreciate beyond current levels. However, the rich P/E ratio signals elevated expectations that require consistent execution to maintain.

Long-term holders may benefit from capital appreciation aligned with NVIDIA’s growth fundamentals, while short-term volatility should be expected as earnings, market sentiment, and industry competition evolve. The minimal dividend yield makes this stock more suitable for growth-oriented portfolios rather than income focus.

Overall Evaluation

NVIDIA’s technical momentum, large market capitalization, and strong fundamental profile position it as a compelling equity with balanced risk-reward characteristics. The stock trades close to its intrinsic value, backed by a bullish analyst consensus and favorable sector dynamics. While valuation multiples are elevated, growth prospects remain intact. Short-term price action points toward consolidation or mild gains, whereas medium- to long-term fundamentals signal sustained appreciation potential.

Given the current landscape—a combination of strong growth prospects, resilient price support, and fair intrinsic valuation—NVIDIA can be categorized as a Buy candidate for growth-centric investors with a tolerance for valuation risk and exposure to technology innovation.