NVIDIA Stock Shows Strong Bullish Momentum Amid High Analyst Confidence and AI Market Growth

Technical Analysis

NVIDIA (NVDA) closed at $141.22 on June 3, 2025, up 2.80% from the previous day. The stock traded within a range of $137.96 to $142, near its short-term high, showing strong upward momentum. The 14-day RSI at 68 signals the stock is approaching overbought territory but still retains room for further upside. The 50-day ($116.58) and 200-day ($126.87) moving averages are well below the current price, confirming a sustained bullish trend. The MACD at 11.05 indicates positive momentum, while the ATR of 3.44 suggests moderate volatility. Volume at 223 million was slightly below the 278 million average, implying buying interest without excessive speculation. The stop-loss level around $136.08 offers a defined risk boundary. Key support stands at $115.99, and there is no immediate resistance identified, implying potential for continued upward movement.

For June 4, 2025, the stock is likely to maintain bullish momentum, staying above the stop-loss with potential to retest the 52-week high of $153.13. Over the next week, barring adverse market reactions, NVDA shares may consolidate between $138 and $147, with a bias to the upside given the strong trend and lack of resistance.

Fundamental Analysis

NVIDIA's market capitalization at approximately $3.45 trillion reflects its status as the world's most valuable publicly traded company. The trailing twelve-month P/E ratio of 45.70 is high but justified by robust growth expectations in the AI semiconductor space. EPS at $3.09 indicates solid profitability, and the very low dividend yield of 0.03% (TTM) suggests management prioritizes reinvestment over income distribution.

The discounted cash flow (DCF) intrinsic value is estimated at $145.09, slightly above the current price, indicating the stock is near fair value with modest upside potential. Analyst consensus shows a median target price of $175 and a high target of $190, reflecting sustained optimism driven by accelerating demand for AI chips. The consensus opinion heavily favors a Buy, with 55 buy and only 3 sell ratings among analysts.

Recent news highlights NVIDIA's reclaiming the title of the world's most valuable company, buoyed by its dominant position in AI hardware used by leading software developers like OpenAI. Despite macroeconomic pressures such as tariffs and chip export controls, the firm's strategic positioning and technology leadership underpin its long-term outlook.

Intrinsic Value and Long-Term Potential

The DCF value near $145 per share positions the stock as fairly valued at current price levels, with upside potential tied to ongoing AI technology adoption and expanding market share. NVIDIA's powerful moat in AI and GPU markets, combined with consistent innovation and partnerships, supports strong earnings growth in the medium to long term. The rate of technological advancement and rising AI integration across industries suggest sustained tailwinds.

Investors with a multi-year horizon may find NVDA offers compelling growth potential, though the elevated valuation requires monitoring for any signs of earnings deceleration or valuation contraction.

Overall Evaluation

NVIDIA exhibits strong technical momentum, sound fundamentals, and robust growth catalysts centered on AI technology leadership. The stock's current price closely aligns with intrinsic value, supported by high analyst confidence and solid earnings metrics. Over the short term, cautious monitoring for RSI overbought conditions is recommended, but current signals favor continuation of the upward trend.

Categorizing NVIDIA as a Buy candidate reflects its dominant market position, growth prospects, and positive technical/fundamental confluence despite the premium valuation. The company's leadership in the AI-driven semiconductor market and consistent innovation justify a favorable stance for both short-term trading and long-term investment considerations.