Buying NVIDIA amid strong computing demand

Over the past several days, NVIDIA shares have surged by more than 5.5%, powered by a wave of bullish signals from the tech sector's biggest players. Last week's standout catalyst came from the quarterly reports of industry heavyweights. Microsoft revealed a 43% growth in Azure revenue and confirmed its commitment to infrastructure, with an estimated $175 billion in capital spending for the 2026 calendar year. Amazon joined the party, accelerating its AWS to 37% and raising an annual capex to $220 billion. Executives explicitly noted that demand for computing power still outpaces supply. For NVIDIA, this is the kind of confirmation that investors dream of: undeniable proof that the appetite for its GPUs and AI hardware won't cool off anytime soon.

Adding fuel to the fire, the S&P 500 Index reached a new all-time high on August 4, closing at $7,736. The rally was fueled by robust, AI-driven forecasts and sliding oil prices. This is a tailwind for NVIDIA because revived risk appetite and renewed capital flows into the technology sector raise the odds of further gains. But there is a flip side: with the broad market being at record levels, the risk of profit-taking is never far away. Any wobble in macro data or a new wave of skepticism about artificial intelligence spending could trigger a swift pullback.

The biggest wildcard, however, is valuation. NVIDIA's market cap now exceeds $5 trillion—a staggering figure implying that much of the company's future growth has already been reflected in the stock price. This means even a solid earnings report at the end of August may not satisfy traders if management's guidance falls short of sky-high expectations.

The final recommendation:

— Buy NVIDIA shares at the current price ($212), aiming to reach $235 within four weeks.

— To protect your position from adverse market movements, place a Stop Loss order at $190.