Nvidia Roars Back: Bullish Signals Ignite Market Frenzy

Nvidia's stock surges as fresh catalysts send bulls charging—again. The chipmaker's rebound defies skeptics and fuels the AI hype machine.

Silicon Phoenix: After a brutal Q2 selloff, Nvidia rises from the ashes with 28% gains in three weeks. Shorts scramble as institutional money floods back in.

Catalyst Cocktail: Three triggers lit the fuse: 1) TSMC's 2nm breakthrough, 2) DoD contract leaks, and 3) that viral demo of ChatGPT-5 running on Blackwell chips. Cue the 'I told you so' from crypto bros who've been stacking NVDA as a 'Web3 proxy.'

Street Fight: Analysts are split—Bernstein upgrades to $1,200 target while Citron warns of 'exhausted momentum.' Meanwhile, retail traders YOLO into weeklies like it's 2021. Some things never change.

The real question: Is this sustainable growth or just another pump before the Fed's September meeting? Either way, grab your popcorn—and maybe some antacids.

Nvidia climbs back as new signals push bulls forward

Gene Munster, who co-founded Deepwater Asset Management, said Nvidia’s stumble was partly self-inflicted. He said the stock had become a victim of its own success, with investors doubting whether the company’s pace of growth could keep going. “Despite all the good things that are going on with AI, it’s still hard for Nvidia investors to sleep well at night,” Munster told CNBC.

Then last week hit. On Wednesday, Nvidia jumped 4% to close at a new record. By Friday, it had added another 2%, wrapping up a clean five-day rally. The sudden run-up came with a chart signal that technical traders care about, a golden cross, when the 50-day moving average moves above the 200-day. That pattern often points to a new long-term uptrend.

Jordan Klein, an analyst at Mizuho, said the rally had to happen. He said investors were pushing the price to close the gap between Nvidia and other names in the sector. But Klein said the real upside might still be ahead. He pointed to Nvidia’s next earnings report in late August as a possible catalyst. “In late August, they’ll guide their October revenue, which I think could be notably higher than expected,” Klein told CNBC.

Blackwell rollout and upcoming earnings drive Wall Street optimism

Klein pointed directly to the new Blackwell chips. The rollout is expected to hit full speed in July and build further through August and September. That wave of new products could lead to higher revenue and stronger guidance, which is what investors want to see.

Zino also said the excitement around Blackwell is likely priced in, but not fully. He believes the company will still benefit from scaling up the chip and that Nvidia could expand margins in the process. “You’re at a point in time for Nvidia where now they’re going to scale up Blackwell, and now they’re going to get some of that margin expansion and some of those benefits here over the next couple of quarters,” Zino said.

Munster backed that view. He told CNBC that Nvidia’s current valuation still looks solid, even with the stock at new highs. “It’s probably the most attractive large-cap tech company on a price-to-growth basis,” he said.

One concern that’s popped up is whether Nvidia’s biggest customers, the hyperscalers, might decide to build their own custom chips. Munster dismissed that, saying the cost of making chips from scratch is still too high. Most of these companies, he argued, will continue to rely on Nvidia for now.

He added that the broader AI buildout is still in its early stages. That gives Nvidia more room to grow. To show just how serious Big Tech still is about AI infrastructure, Munster pointed to Meta’s hiring tactics. The company, which owns Facebook, has reportedly offered multimillion-dollar bonuses to poach staff from OpenAI. That’s a sign, Munster said, that the race for AI dominance is far from over, and Nvidia is still central to it.

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