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#NVDA AI Demand Is Still Strong, But $235 Is the Test
NVIDIA closed Friday around $230.36, up 0.84%, after a strong three-session recovery from the $217 area. The stock is now pressing against the upper end of its recent range, so the next move matters more than the last few green candles.

The short-term structure is bullish, but NVDA is approaching a resistance zone where chasing becomes less attractive.

Friday's trading range was $229.63–$234.76, with roughly 135.4 million shares changing hands. That is substantial participation, although volume was lower than the extremely heavy activity seen during the late-August volatility.

The first level I am watching is $235.

A clean break above $235, followed by a successful retest, would strengthen the bullish setup. The next areas I would watch are around $240–$245, followed by the previous record-high region above $250 if momentum expands.

On the other hand, failure around $235 followed by a move below $228 would suggest that buyers are losing short-term control.

Key levels

Resistance: $235 → $240–$245 → $250+
Support: $228 → $224 → $217–$218
Major downside support: around $209–$210

The recent price action gives us an interesting structure. NVDA dropped sharply to around $208–$210 in late August, then recovered aggressively. It closed at $224.41 on September 2, $228.45 on September 3 and $230.36 on September 4.

That sequence shows improving momentum, but the market still needs to prove that the recovery can break through the $235 area.

The fundamental story is still powerful

NVIDIA's latest quarterly numbers remain the biggest reason the bullish thesis has not disappeared.

For fiscal Q2 2027, NVIDIA reported $96.2 billion in revenue, up 18% from the previous quarter. The company also guided for approximately $108 billion of revenue for the following quarter, while management said revenue could grow roughly 70% in the next fiscal year.

More importantly, demand is not coming from one customer or one AI model.

NVIDIA said its next-generation Vera Rubin platform has orders from major hyperscalers, AI clouds and system OEMs, with production shipments beginning earlier this month.

NVIDIA has also announced its planned $12.93 billion acquisition of Hugging Face, showing that the company's strategy is expanding beyond simply selling GPUs toward a broader AI ecosystem.

But this is where I would stay careful.

The stronger the AI expectations become, the higher the market's expectations for NVIDIA become as well. Excellent earnings are no longer enough by themselves. Investors increasingly want evidence that AI infrastructure spending can continue at an exceptional pace.

Macro matters

NVDA remains a high-beta growth stock, so interest rates and liquidity matter.

Friday's stronger-than-expected U.S. employment report pushed Treasury yields higher and increased expectations for a possible September Fed rate hike. The Nasdaq fell 0.29% that day, even though semiconductor stocks held up relatively well.

This creates an important balance:

Strong AI demand = bullish for NVDA.
Higher yields and tighter financial conditions = potential pressure on NVDA's valuation.

That is why I would not treat the AI narrative as a guarantee of higher prices.

Bullish scenario

If NVDA breaks $235 with strong volume and holds that level on a retest, I would watch:

$240 → $245 → $250+

A sustained move above $250 would put the stock back into price-discovery territory and could create another momentum leg.

Bearish scenario

If $235 rejects price and NVDA loses $228, the first downside target becomes approximately $224.

If $224 fails, the next important zone is $217–$218.

A deeper correction toward $209–$210 would not automatically destroy the longer-term thesis, but it would indicate that the recent recovery has lost considerable momentum.

Trading plan

I would avoid buying aggressively directly underneath $235.

Breakout setup:
Entry: $235–$237 after confirmed breakout/retest
Stop: around $228–$230, depending on the structure of the retest
TP1: $245
TP2: $250
TP3: $260+ if momentum remains strong

The trade should only be taken if the stop distance produces at least 1:2 risk/reward toward the first meaningful target.

Pullback setup:
Watch $224–$228 for a bullish reaction.
Invalidation: decisive loss of the support zone.
Upside targets: $235 → $245.

I would keep position size smaller if entering close to resistance and increase exposure only after confirmation. Never widen the stop simply because the stock moves against the position.

My view

I am bullish above $224, but I become significantly more constructive above $235.

The fundamentals remain exceptional, AI infrastructure demand is still expanding, and NVIDIA continues to strengthen its position across the AI ecosystem. But the stock has already priced in enormous expectations, so the technical confirmation matters.

For me, the next important question isn't:

“Is NVIDIA a good company?”

It clearly remains one of the most important companies in the AI infrastructure market.

The better trading question is:

“Can NVDA turn $235 from resistance into support?”

If yes, the next leg higher becomes much more interesting.

If not, I would rather wait for a better entry than chase the price.

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