Is Nvidia About to Steal the Spotlight Again After Bullish Pattern Quietly Emerges?
The door is open for the AI chipmaker to regain its crown as the most coveted stock in the market. Here's what to watch.
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When stocks are rallying, everyone wants to participate. Stocks become a popular topic of discussion, even among folks who don’t follow the daily gyrations of the markets.
At times like these, there’s always that one stock that dominates the headlines and occupies the minds of traders and investors. IBM IBM. Intel INTC. Cisco Systems CSCO. Research in Motion BB. Tesla TSLA. Apple AAPL. Each of these stocks had their moment when their name was on the tip of every trader’s tongue.
Nvidia's Time to Shine?
Nvidia NVDA is the most recent example of this phenomenon. The Santa Clara, California-based chipmaker gained an incredible 238% in 2023, followed by an impressive 171% rally in 2024.
Those massive gains made the stock immensely popular, leading to an intense focus by investors.
Down but Not Out
2025 has been less kind to the AI chipmaker. Nvidia shares are down 17.71% year to date. The stock is underperforming all of the major U.S. stock indexes.
Looking at the stock’s chart, one question emerges: Is Nvidia about to regain its crown as the most coveted stock in the market?
Signs of a comeback are beginning to emerge. Since the April 7 opening bell (point A), Nvidia has gained 23%. The stock is trading above its 50-day moving average (blue) for the first time since late February (point B).
Nvidia has formed a double-bottom pattern (shaded yellow). This bullish formation projects the stock to the $140 area. If Nvidia can close at or above that level, the stock will reach its highest price since January.
There will be obstacles along the way. Nvidia’s 200-day moving average (red) currently lies in wait near $125. A bearish trendline (black dotted line) also resides in that vicinity.
If Nvidia can demonstrate the necessary strength to break through that area, the door is open to $140 — and possibly higher. Nvidia’s all-time closing high is $149, set on January 6.
Semiconductors on the Move
Semiconductor stocks in general are on the rebound. The Philadelphia Semiconductor Index, or SOX, has formed a double-bottom pattern similar to that of Nvidia (shaded yellow). Like Nvidia, the index has climbed above its 50-day moving average (blue) for the first time since February.
Nvidia is scheduled to report earnings after the closing bell on May 28. For Nvidia’s just-ended quarter, analysts are looking for earnings of 0.83 per share, and $43.28 billion in revenue.
At the time of publication, Ponsi was long NVDA.
