Yahoo Finance

Key Takeaways

• Nvidia shares jumped in extended trading on Wednesday after the chip giant surpassed Wall Street’s quarterly revenue expectations amid booming AI demand.

• The stock has broken out from a flag pattern, a move that has coincided with the 50-day moving average crossing above the 200-day MA to form a bullish golden cross.

• Investors should watch major overhead areas on Nvidia's chart around $143, $150 and $160, while also monitoring a crucial support level near $130.

Nvidia (NVDA) shares jumped in extended trading on Wednesday after the AI chipmaker surpassed Wall Street's quarterly revenue expectations.

The company announced after the closing bell that its fiscal first-quarter sales rose 69% to a record $44.06 billion, as major technology companies continue to ramp up spending on AI infrastructure. Profit was lower than analysts had estimated, as the company recorded a $4.5 billion charge in the quarter due to restrictions on the sale of its H20 chips to China, though the amount was less than the $5.5 billion the company said it anticipated last month.

CEO Jensen Huang said global demand for Nvidia's AI infrastructure remains "incredibly strong", adding that he sees accelerating demand for AI computing with the use of AI agents becoming mainstream.

Nvidia shares slumped between January and early April amid concerns of a slowdown in AI spending and the Trump administration’s unpredictable trade policies. However, the stock has rebounded 56% from last month’s low as trade tensions eased and the chipmaker announced a partnership with an AI subsidiary of Saudi Arabia’s sovereign wealth fund.

The stock rose nearly 5% to just above $141 in after-hours trading Wednesday. The stock hasn't traded above $140 during regular trading hours since February.

Below, we dial into Nvidia’s four-hour chart and apply technical analysis to identify major price levels that investors will likely be watching.

Flag Pattern Breakout

Nvidia shares rallied sharply after breaking out from a pennant earlier this month, before consolidating again within a flag pattern above the closely watched 200-day moving average (MA).

More recently, the stock has broken out above the flag pattern’s upper trendline, a move that has coincided with the 50-day moving average crossing above the 200-day MA to form a bullish golden cross.

Indeed, the stock’s upside momentum looks set to continue, though investors should watch if trading volume confirms the move higher. During the lead-up to earnings, share turnover had declined, indicating investors remained on the sidelines ahead of the highly anticipated results.