NVIDIA set to rally after new processor reveal

On Tuesday, NVIDIA shares took a breather as investors cashed in some chips, despite the relentless drumbeat of positive artificial intelligence (AI) news. Spiking energy costs and growing bets on tighter US monetary policy cast a new shadow of uncertainty over global financial markets. 

Make no mistake, though—NVIDIA's underlying story hasn't lost an ounce of strength. The company keeps proving that it is the undisputed king of the AI gold rush. Consider the numbers: last quarter, revenue soared to a jaw-dropping $81.6 billion, an 85% leap from a year ago, while data center sales surged 92% to $75.2 billion. 

Don't forget about the new RTX Spark processor. This launch hands the tech giant a fresh growth engine, powering its push deeper into the AI-driven personal computing space. It is not just about escaping the server room—it is about breaking into a promising market. And with titans like Microsoft, Dell, HP, and Lenovo in its corner, the stage is set for a brand-new revenue stream to take shape over the coming quarters. 

Now, for the caveats. Stricter American export rules on cutting-edge chips could throw a wrench into international demand. Rising Treasury yields are another wild card that often puts a cap on tech valuations. Still, neither of these is close to derailing NVIDIA's long-term trajectory. At worst, they might cause quotes to dip after a strong rally.

Turning to the technicals, after an unsuccessful attempt to hold above the $230 level, the stock is now testing the 61.8% Fibonacci retracement at $222.11. The Chaikin Oscillator is still in negative territory, but here is a telling detail: yesterday's decline didn't come with any meaningful deterioration in its readings. This is a subtle signal that buyers are lurking beneath the surface, ready to step in. 

For those looking to act, pay attention to the trading plan down below:

Buy NVIDIA shares in the $220–$223 range. Place Take Profit at $231.00. Set Stop Loss at $217.00.

This forecast is valid from June 3 till June 10, 2026.