$NVDA Edges Higher on MediaTek Deal, Targets $225

Trend_Radar
18:44

$NVIDIA(NVDA)$

$NVIDIA (NVDA) +1.48% Recovery: AI Giant Stabilizes Near $221, Momentum Building Toward $225 Resistance

Latest Close: $220.78 (+1.48%) | Distance to 52W High ($236.54): -6.7% | After-hours: $220.26

Core Market Drivers: Nvidia announced a $3.5B convertible bond investment in MediaTek, deepening NVLink Fusion partnership for custom AI accelerators. Taiwan's benchmark rallied +1.8% on the news. However, lingering concerns over AI revenue-sharing deals temporarily halted keep upside contained near-term.

Technical Analysis: Volume came in at 125M shares (Volume Ratio 0.67), significantly below average — indicating accumulation rather than distribution. MACD remains negative at -0.57 (DIF 2.48 vs DEA 2.76), but the histogram is converging toward a bullish crossover. RSI(6) recovered to 55.08 from 34.96 four sessions ago, exiting oversold territory with room to run. KDJ shows K-line (47.87) crossing above D-line (39.65), confirming short-term momentum shift.

Key Price Levels:

  • Primary Support: $195.49 (8/31 swing low)

  • Strong Resistance: $225.19 (8/31 pivot high)

  • Immediate Pivot: $218.35 (pre-market anchor)

Valuation Perspective: P/E TTM at 27.92, forward P/E at 23.59 vs. historical average 36.20 — trading at a -35% discount to its 3-year forward multiple. P/S at 17.56 remains elevated but justified by 117% ROE and 53.6% ROA.

Analyst Targets: 56 analysts covering NVDA: 22 Strong Buy, 38 Buy, 2 Hold, 1 Underperform. Average target $318.15 (range $180–$515), implying +44% upside from current levels.

Weekly Outlook: Expect consolidation within $216–$225 range while MACD completes its bullish crossover. Break above $225.19 opens path to $236.54 (52W high). Failure to hold $218 pivot could retest $195 support. Volume expansion above 150M shares will be critical for breakout confirmation.

⚠️ Risk Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Markets involve risk. Past performance does not guarantee future results.

🎯$NVIDIA (NVDA) Options Strategy: Bull Call Spread (Debit Spread)

  • Underlying: NVDA

  • View: Cautiously bullish — short-term momentum shift confirmed by RSI recovery and KDJ bullish crossover; MACD converging toward bullish crossover; price stabilizing near $220.78 with upside toward $225.19 resistance

  • Strategy Type: Debit Spread / Directional Long (Net Debit)

  • Option Contract Portfolio:

    • Buy 1x NVDA Sep 04, 2026 $220 Call @ Mid $3.50 (Debit)

    • Sell 1x NVDA Sep 04, 2026 $225 Call @ Mid $1.50 (Credit)

  • Max Gain & Loss:

    • Max Loss: $2.00 per share ($200 per contract)

    • Max Gain: $3.00 per share ($300 per contract)

  • Initial Cost/Credit: Net Debit of $2.00 per share ($200 per contract)


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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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