NVIDIA Stock Analysis: Bullish Momentum, Strong Buy Ratings, and AI Growth Potential

Technical Analysis


NVIDIA (NVDA) closed at $137.38 on June 2, 2025, up 1.67% from the previous session. The intraday range of $135.42 to $138.11 demonstrates moderate bullish momentum. The Relative Strength Index (RSI) at 70 suggests the stock is at the cusp of being overbought, signaling cautious optimism. Price currently trades above both the 50-day ($116.20) and 200-day ($126.77) moving averages, confirming a robust upward trend. The MACD reading of 11.14 supports bullish momentum over the past three months. Critical resistance stands at $139.19, close to the current price, while near-term support lies at $132.48 (stop-loss level). Given the ATR of 3.56, daily volatility remains moderate.



For June 3, 2025, a continuation of the uptrend is probable, although testing the $139 resistance could induce a minor pullback or consolidation. Over the next week, assuming no adverse news, the technical setup favors a gradual advance toward the $145-$150 range, supported by solid volume and momentum indicators.



Fundamental Analysis


Nvidia’s market capitalization stands at $3.35 trillion, confirming its status as a mega-cap leader in semiconductors and AI hardware. The trailing twelve months (TTM) price-to-earnings ratio of 44.46 indicates a premium valuation, justified by its dominant position in AI chipsets and expected growth trajectory. EPS is $3.09, reflecting strong profitability. The trailing dividend yield is minimal at 0.03%, underscoring the company's focus on growth reinvestment rather than income.



The discounted cash flow (DCF) valuation at approximately $146 aligns closely with the current price, suggesting the stock is trading near its intrinsic value. Analyst consensus shows a strong buy bias: 55 buy ratings, 15 hold, 3 sell, with a median price target of $175 and a high target up to $190, implying significant upside potential.

Recent news highlights sustained demand for GPUs critical to AI infrastructure despite export constraints in China, validating Nvidia’s resilient market position. Upgrades in price targets from major banks to $180 further reinforce confidence in Nvidia’s future earnings growth, particularly given AI’s early-stage expansion phase.



Intrinsic Value and Long-Term Investment Potential


Nvidia’s current valuation near $137 versus a DCF intrinsic value of $146 points to fair pricing with moderate undervaluation potential. Long-term growth drivers include ongoing AI adoption, data center expansion, and advancements in GPU technology. The secular trend towards AI computing and Nvidia’s leading technological moat position it well for sustained earnings growth and increasing cash flow generation over the coming years.


Volatility could persist in the near term due to macroeconomic factors and geopolitical risks affecting chip supply chains, yet Nvidia’s innovation pipeline and strategic partnerships reduce downside risks.



Overall Evaluation


Nvidia is categorized as a Buy candidate based on its technical momentum, strong analyst consensus, and solid fundamental position. The firm’s premium valuation is supported by leading AI growth prospects backed by validated earnings power and robust cash flows. Near-term resistance at $139 may limit immediate upside, suggesting a measured entry or incremental accumulation approach. In the medium to long term, Nvidia remains a key beneficiary of AI adoption with intrinsic value appreciation potential beyond current market levels.



This combination of strong fundamentals, positive technical signals, and favorable industry dynamics positions NVDA as an attractive stock for investors targeting growth in the semiconductor and AI sectors.