#NVDA

NVIDIA is entering today’s session around $217.55, following a sharp 4.57% decline on August 28. The previous session traded between $216.81 and $229.26, while the stock remains close to its 52-week high of $236.54. The bigger picture is still constructive, but the latest candle shows that investors are taking some profit after the post-earnings surge.

The earnings reaction

The important part of this move is that NVDA did not fall because the latest results were weak. NVIDIA reported $96.2 billion in quarterly revenue, more than double the previous year, while adjusted EPS came in at $2.22 versus $2.08 expected. Management also guided for approximately $108 billion of next-quarter revenue, keeping expectations extremely high.

Short-term momentum

The price action tells a more complicated story than the earnings headline. NVDA jumped 8.74% to $227.98 on August 27, reaching an intraday high of $230.47, but gave back much of that move the following day. That creates a clear short-term warning: buyers reacted aggressively to the earnings news, but sellers were still strong enough to push price back toward $217. The momentum is therefore positive on the larger timeframe but cooling in the immediate structure.

Volume confirms the battle

Trading activity was extremely heavy during the earnings reaction. August 27 recorded roughly 297.8 million shares, followed by another 194.3 million shares on August 28. Such volume around a major earnings event tells us that the current price is being actively repriced rather than drifting through a quiet market. The next direction should therefore be judged by how price behaves after this unusually large exchange of shares.

First support

The $216–$218 area is the first important support zone because it contains the August 28 low near $216.81 and the current closing area. Holding this region would mean buyers are still defending the post-earnings structure. A sustained move below it would make the recent breakout look increasingly like a failed continuation rather than a normal pullback.

Major resistance

The first major resistance sits around $227–$230. This zone matters because NVDA accelerated through it during the post-earnings rally but failed to hold those highs. Above that, the $236–$237 region is the bigger technical barrier because it contains the current 52-week high. A convincing move through that high would establish fresh price discovery; repeated rejection below it would keep the stock trapped in a broader range.

AI demand remains the fundamental engine

NVIDIA's fundamental story remains unusually strong. Management is forecasting roughly 70% revenue growth for fiscal 2028, far above the approximately 44% growth Wall Street had expected. NVIDIA also said demand remains broad across hyperscalers, enterprises and sovereign customers. The company is simultaneously preparing its next-generation Vera Rubin platform, giving investors another future product cycle beyond Blackwell.

Supply and margin risk

The bullish fundamental story is not without friction. NVIDIA has acknowledged supply constraints and rising memory-component costs, with gross margins expected to bottom around 71%–72% in the fourth quarter. That matters because the market is already pricing in extremely strong growth. If revenue continues beating expectations but margins deteriorate faster than expected, investors could become more sensitive to valuation.

Amazon partnership

One confirmed development worth watching is NVIDIA's expanded partnership with Amazon Web Services, with plans to deploy 2 million NVIDIA GPUs by 2028. This reinforces the argument that AI infrastructure spending is not limited to one or two technology companies. It also gives NVIDIA another large channel for future demand as cloud providers continue expanding their AI capacity.

Macro pressure

The broader market backdrop is becoming less comfortable for high-growth technology stocks. Markets have increased the probability of a September Federal Reserve rate hike to roughly 57%, while Treasury yields have moved higher after hawkish comments from Fed officials. Higher yields can put pressure on richly valued technology companies even when their underlying earnings remain strong.

Sector momentum

The AI trade itself also needs to be watched carefully. NVIDIA's earnings initially triggered a strong semiconductor rally, but the stock subsequently gave back part of that move and the wider momentum trade has recently become more volatile. This means NVDA cannot be analyzed in isolation: if semiconductor peers continue weakening, NVIDIA may struggle to maintain its post-earnings strength even with excellent company-specific numbers.

Bullish scenario

The bullish structure would become stronger if NVDA can reclaim and hold the $230 area, followed by a clean break above the $236.54 52-week high. That would confirm that the post-earnings pullback was absorbed and that buyers are willing to push the stock into new territory. The bullish setup would weaken substantially if price loses the $216.80 area and fails to recover it.

Bearish scenario

The bearish structure becomes more important below $216.80, because that would take price beneath the latest post-earnings low. The next areas to watch would be around $210–$212, followed by the psychological $200 level. A recovery back above $230 would weaken this bearish interpretation because it would show that sellers failed to maintain control after the breakdown.

Market verdict

NVDA remains fundamentally strong, but the chart is currently showing profit-taking and consolidation rather than clean upside continuation. The earnings numbers are powerful, AI demand remains enormous, and management's longer-term outlook has strengthened the fundamental case. At the same time, the stock has already experienced a major repricing, valuation expectations are high, and macro conditions are becoming less supportive. For now, the key battle is between $216–$218 support and $227–$230 resistance, with the 52-week high near $236.54 acting as the major confirmation point for a renewed upside expansion.

@Gate_Square @GateSquare
$NVDA ‌