Nvidia’s Pre-Market Surge Fuels Magnificent Seven Rally Ahead of Earnings

Nvidia (NVDA) is flexing its AI muscle again—premarket gains signal another potential win for the chipmaker. The stock’s momentum could drag the so-called ’Magnificent Seven’ along for the ride, just hours before earnings drop.

Wall Street’s betting big on another blowout quarter. But let’s be real—when hasn’t Nvidia outperformed lately? The real question: How long until the ’smart money’ starts taking profits and leaves retail holding the bag?

TLDR

• Nvidia (NVDA) shares surged up to 2.9% in premarket trading Tuesday, leading the Magnificent Seven tech stocks
• The company reports quarterly earnings Wednesday after market close, with investors watching for AI spending updates
• Stock has formed a bullish flag pattern indicating potential uptrend continuation despite being down 2% year-to-date
• Key resistance levels to watch are $143 and $150, with support at $121 and $115
• Nvidia has rallied 52% from April lows on trade deal optimism and strong AI infrastructure spending forecasts

Nvidia shares climbed as much as 2.9% in premarket trading Tuesday, outpacing other Magnificent Seven tech stocks. The AI chipmaker leads peers including Tesla, Alphabet, and Meta heading into its quarterly earnings report Wednesday.

The stock surge comes as investors prepare for what many consider the most watched earnings announcement of the season. Nvidia will release results after market close Wednesday, with Wall Street eager for updates on AI spending trends.

Tesla gained 2.7% in premarket action while Alphabet rose 2.3%. Meta increased 2.1% and Apple added 2% as the broader tech sector showed strength ahead of the trading session.

Microsoft rounded out the group with a 1.3% premarket gain. Amazon climbed 1.9% as positive sentiment spread across major technology names.

Technical Picture Shows Bullish Setup

The stock has formed a flag pattern on the charts. This technical formation typically signals a continuation of the existing uptrend after a brief consolidation period.

Nvidia broke out from a falling wedge pattern several weeks ago before entering this current consolidation phase. The relative strength index has pulled back from overbought levels but remains above neutral territory.

This positioning suggests bullish momentum persists despite recent sideways price action. Technical analysts view the setup as favorable heading into the earnings announcement.

Key Price Levels Draw Attention

Traders are watching the $143 resistance level closely as shares approach this area. This price point aligns with February’s swing high and represents a zone of previous trading activity dating back to October.

A break above $143 could target the $150 region next. This higher resistance area connects to peaks formed between November and January when profit-taking previously emerged.

The $150 level also sits NEAR a projected pattern target based on the prior breakout move. Technical analysts calculate this target by measuring the initial trending move and projecting it from the flag’s lower boundary.

Support levels remain well-defined below current prices. The $121 area represents the first major support zone, connecting March countertrend peaks with September highs from last year.

Further weakness could test the $115 support level. This area coincides with the 50-day moving average and encompasses trading ranges that developed between October and May.

Earnings Focus on AI Demand

Investors will scrutinize quarterly revenue growth for signs that AI infrastructure spending remains strong. Big tech hyperscaler customers have been driving demand for Nvidia’s data center chips throughout the AI boom.

The company faces questions about China sales after warning of a $5.5 billion charge earlier this year. New export restrictions from the TRUMP administration have limited sales of Nvidia’s H20 chip in that market.

Despite these headwinds, Nvidia has rallied 52% from April lows. Growing Optimism around potential trade deals has supported the recovery along with robust AI spending forecasts from major tech companies.

The stock remains down 2% year-to-date but has shown resilience during recent market volatility. Wednesday’s earnings report could determine whether the technical breakout leads to new highs or faces resistance at current levels.

Premarket gains Tuesday suggest investor confidence ahead of the announcement, with Nvidia leading the Magnificent Seven higher as markets opened the trading session.