Nvidia Stock Recovery Update
Nvidia stock has successfully recovered losses incurred during the DeepSeek sell-off. A significant 22% rally in February has propelled Nvidia shares above both their 200-day and 50-day moving averages. Investors are currently awaiting Nvidia’s upcoming earnings report next week, which is anticipated to include updates on the next-generation Blackwell GPU.
On Tuesday, Nvidia’s stock surpassed a critical threshold as it mitigated the losses resulting from the $589 billion DeepSeek sell-off that occurred in late January. At its intraday peak of $143.44, Nvidia was trading above its January 24 closing price of $142.62, marking the day before the GPU manufacturer faced the largest one-day market value decline in history. However, as of Tuesday, the stock trimmed its gains to approximately 1%, trading at $140.34.
In February, Nvidia shares have experienced significant growth, soaring around 22%. This impressive performance has enabled the stock to break through several important technical trading benchmarks, including the 200-day and 50-day moving averages, which are depicted by the red and blue lines in the accompanying chart.
David Keller, Chief Strategist at Sierra Alpha Research, mentioned to Business Insider that he is closely monitoring $130 as a pivotal support level for Nvidia shares, which it has recently surpassed. Meanwhile, Ari Wald, the head of technical research at Oppenheimer & Co., indicated that $140 is the crucial resistance level to watch. With the DeepSeek losses largely recuperated and key technical resistance levels cleared, investors are keenly anticipating Nvidia’s earnings announcement set for next week.
Bank of America analyst Vivek Arya highlighted, “The next important test for AI bulls comes on Feb-26 when NVDA reports FQ4 results.” He also cautioned that Nvidia’s stock might face volatility following the earnings announcement, which could be due to a potentially conservative first-quarter outlook as the company transitions to Blackwell GPUs. Nevertheless, he noted that the long-term fundamentals should remain strong.
Arya expressed optimism about future momentum, stating, “We expect positive momentum to resume as investors look forward to NVDA’s leading new product pipeline (GB300, Rubin) and TAM expansion into robotics and quantum technologies at the upcoming GTC conference (Mar-17).” Even after Nvidia’s more than 20% rally this month, Arya pointed out that the stock’s valuation remains attractive, with a 24x price-to-earnings ratio based on 2026 estimates, which falls at the lower end of its historical range of 25x to 56x.
Additionally, Super Micro Computer, which specializes in server racks integrated with Nvidia’s GPUs, indicated during its earnings call last week that it expects a revenue boost attributed to the introduction of Blackwell. CEO and founder Charles Liang remarked, “Highlighted by the beginning of our transition from Hopper to Blackwell GPUs, we expect the growth in new generation platforms to accelerate as supply ramps this quarter and beyond.”
