$NVDA

‌$NVDA: The AI Trade Is Being Tested — But the Thesis Has Not Broken

$NVDA closed Tuesday around $225.73, down roughly 2% after opening above $233. The important part isn’t the red candle itself — it is where buyers decide to defend the pullback.

The broader market was under pressure as oil surged and inflation concerns returned, but NVIDIA has another catalyst working in its favor: the AI infrastructure cycle is still expanding beyond the hyperscalers.

Dell’s latest numbers were particularly important. Its AI-server backlog and orders remain enormous, with NVIDIA-powered systems at the center of that demand.

And NVIDIA is no longer positioning itself purely as a chip company.

Its $12.93 billion Hugging Face acquisition shows the strategy clearly: NVIDIA wants to control more of the AI stack — hardware, software, models and developers.

That is why I don’t see yesterday’s decline as a fundamental reversal.

Technically, my levels are straightforward:

$224–225 → first support

$218–220 → key trend-defense zone

$233–237 → major resistance / 52-week high area

A reclaim of $233–237 with volume would put the stock back into breakout territory.

If that happens, the next psychological target becomes $250.

But losing $218–220 would change the short-term picture considerably and could open a deeper retracement.

There is another reason I’m watching NVDA closely.

Qualcomm just announced a potentially $60 billion AI-chip partnership with Amazon, showing that hyperscalers are increasingly willing to diversify their AI hardware suppliers.

That’s a real competitive risk for NVIDIA over the longer term.

But right now, the evidence still points in the other direction: AI compute demand is broadening, enterprise adoption is accelerating, and NVIDIA remains deeply embedded in the infrastructure being built.

So my question isn’t “Is the AI trade dead?”

It’s:

Can $NVDA turn this pullback into another accumulation zone before the next leg higher?

For me, $218–220 is the number to watch. 👀