NVIDIA stock shows signs of recovery after 17% decline

NVIDIA's stock prices, the world's largest graphics processor developer, were bullish during yesterday's trading session amid global trade uncertainty. 

Recent events, such as the reversal of the imposition of U.S. tariffs on imports from Mexico and Canada, have boosted the U.S. stock market. Although the U.S. gets less than 10% of its chip imports from these countries, Foxconn builds a large manufacturing facility in Mexico for NVIDIA's GB200 superchips. Also, President Donald Trump threatened to impose tariffs on semiconductors from Taiwan, which could impact NVIDIA (NVDA) considering its close ties to Taiwanese manufacturers.

NVIDIA's stock fell significantly last week, losing about 17% of its value and dropping to $116.70 per share. This led to a nearly $600 billion reduction in the company's market capitalization. The main reason for the collapse was the success of Chinese artificial intelligence (AI) startup DeepSeek, which presented its neural network, capable of competing with OpenAI solutions, but developed at significantly lower costs.

At yesterday's close of trading, NVIDIA stock was trading at $118.38, remaining near recent lows. The current situation requires close attention to further developments in artificial intelligence and the market's reaction to new technologies.

On the D1 chart, NVDA quotes are showing an exit from the ascending channel on the background of recent events in the AI sphere, having formed a wide gap. Recovery of this price gap may take significant time, but traders are already making attempts to partially work it out. Bears Power indicator volumes (standard values) are declining towards zero. This may indicate weakening of sellers' pressure and partial closing of the gap.

Signal:

The short-term outlook for NVDA is to buy.

The target is at the level of 135.15.

Part of the profit should be taken near the level of 127.75.

A stop-loss could be placed at the level of 109.00.

The bullish trend is short-term, so a trading volume should not exceed 2% of your balance.