TLDR
- Nvidia stock rose 4.3% to $190.08 on October 27 as AI infrastructure demand remains strong across the sector.
- The stock is trading above key technical support levels but approaching resistance near the $195-$200 all-time high.
- Top investor Keithen Drury warns that future growth expectations may already be reflected in current share prices.
- Wall Street expects Q3 earnings of $54.6 billion in revenue and $1.24 EPS when results drop November 19.
- RSI indicators show overbought conditions, suggesting potential near-term consolidation before the next directional move.
Nvidia stock finished at $190.08 on October 27, posting a 4.3% gain over the previous 24 hours. The chipmaker continues to attract investor capital as AI infrastructure spending shows no signs of slowing.
The company maintains its position as the dominant player in GPU technology. Its AI chip leadership keeps drawing institutional money into the shares.
Technical analysis shows the stock trading above both its 50-day and 200-day moving averages. The 50-day moving average sits at approximately $170.
The 200-day moving average has climbed to around $130. Both moving averages are sloping upward, which indicates positive momentum.
These levels now serve as support zones if the stock pulls back. The upward slope of both averages confirms the bullish trend structure.
Key Resistance Zone Approaches
The stock faces immediate resistance near $195 to $200, which marks the all-time high area. Breaking above this zone could open a path toward $210-$220 in the coming weeks.
Support appears at $175 if shares decline. This level acted as consolidation during September trading.
Additional support exists at the 50-day moving average near $170. RSI readings have moved into overbought territory on shorter timeframes.
This warns traders that a pause or pullback could materialize. The extended rally from recent lows raises the odds of consolidation.
Despite the bullish trend, the stock is testing levels where profit-taking often occurs. A new catalyst would be needed to push through resistance.
Valuation Concerns Surface From Top Analyst
Keithen Drury, a highly ranked investor, maintains a positive outlook on Nvidia but raises valuation questions. He notes the company “could have massive growth ahead” if AI adoption continues at current rates.
However, Drury cautions that much of this future growth may already be baked into the stock price. He points to concentration risk within Nvidia’s customer base as another concern.
A spending slowdown from major customers like Microsoft or Amazon would impact revenue growth. The circular nature of early AI investments presents another risk factor.
Tech giants are pouring billions into Nvidia GPUs to build AI infrastructure. But they’re still working to generate meaningful revenue from these investments.
If AI monetization lags behind infrastructure spending, capital budgets could normalize. This would slow the pace of Nvidia’s revenue expansion.
Despite these concerns, Wall Street analysts remain largely bullish. HSBC recently lifted its price target to $275, citing strong data center demand.
The firm expects Nvidia to hold 80-90% market share in AI chips through 2025. Morningstar estimates fair value around $170, implying modest overvaluation at current levels.
Q3 Earnings Report Looms Large
Nvidia reports Q3 earnings on November 19. Wall Street expects revenue of approximately $54.6 billion and adjusted EPS of $1.24.
The company has guided to around $54 billion in quarterly revenue, representing 54% year-over-year growth. A beat on these numbers could fuel another leg higher.
In a bullish scenario, the stock could reach $210-$220 if earnings impress. Continued AI spending from hyperscalers would support this outcome.
A bearish scenario would see shares retreat to $160-$170 on disappointing guidance. This would represent a 10-15% correction while keeping the longer-term uptrend intact.
Nvidia’s recent partnership with Uber demonstrates its expansion beyond pure chip sales. The company is positioning itself as a complete AI systems provider.
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