NVIDIA shares poised to rise on AI demand and European expansion

NVIDIA (NVDA) shares are demonstrating resilience due to strong demand for AI chips. Despite volatility in late May, the stock has continued its upward trend in June. On Tuesday, June 17, the closing price reached $144.32.

European expansion has become a key support factor for NVIDIA. At GTC Paris, the company announced projects with a total computing power of 3,000 exaflops, including the construction of gigafactories and supercomputers. Among notable deals is a partnership with Deutsche Telekom to create Germany’s first industrial AI cloud, which will supply 10,000 chips by 2026. European leaders like France and Germany are actively advancing the concept of 'sovereign AI,' granting NVIDIA access to new markets. Analyst estimates suggest the EU’s AI infrastructure investments alone will reach $120 billion by 2028, and NVIDIA — thanks to its ecosystem — remains the frontrunner in this race.

Competition from AMD (MI350/MI400) and Huawei, which is developing its own neural processors, does not yet threaten NVIDIA’s dominant position. While Huawei may partially replace Western chips in China, its solutions lag a generation behind in performance.

Meanwhile, in China, Nvidia plans to participate in an international exhibition event in July, which may signal attempts to maintain its market presence. However, restrictions remain, and the company has excluded China from its forecasts, focusing instead on improving margins through mass production of Blackwell and increasing the share of system sales.

On the daily chart, NVDA stock continues to show upward momentum. The price remains above key moving averages EMA (20) and EMA (50), confirming the bullish impulse. The MACD indicator stays in positive territory, though its histogram suggests slight weakening of bullish pressure. Trading volumes remain at moderate levels, indicating steady buying activity. Overall, the uptrend persists for now, but early signs of weakening bullish momentum and potential consolidation are emerging. This also warrants attention to possible corrective moves.

Current recommendation:

Buy NVDA at the current price. Take profit – 155. Stop loss – 138.