Nvidia Just Became the First $5 Trillion Company—Monitor These Crucial Stock Price Levels

Nvidia (NVDA) became the first company to ever achieve a market capitalization of $5 trillion as its stock surged in early trading Wednesday.

Shares were up 4.5% at $210 recently, after gaining 5% yesterday following a keynote address from CEO Jensen Huang at Nvidia’s developers conference in Washington, D.C. where he highlighted the companyt’s latest AI products and announced several deals.

The chipmaker unveiled a $1 billion investment in Nokia (NOK), as well as a new strategic partnership with the Finnish tech firm in an effort to expand its AI infrastructure push. Nvidia also announced that it will collaborate with Oracle (ORCL) to build AI supercomputers for the U.S. Department of Energy and collaborate with Palantir Technologies (PLTR) on the development of an integrated AI technology stack.

Nvidia shares have gained more than 50% since the start of the year as investors have piled into the stock amid strong demand for AI chips and optimism about the company’s ongoing growth prospects. The company’s $5 trillion market cap is substantially higher than the next companies on the list of the world’s most valuable—Microsoft (MSFT) and Apple (AAPL) have market caps around $4 trillion.

Below, we break down the technicals on Nvidia’s chart and identify crucial price levels to monitor.

Rising Wedge Breakout

Nvidia shares broke out from a rising wedge on Tuesday on the highest trading volume since late May, signaling buying conviction behind the move.

Although chart watchers often associate this pattern as bearish, it can also indicate a bullish continuation rather than a reversal if it forms during a strong uptrend, as is the case on Nvidia’s chart.

Meanwhile, yesterday’s breakout coincided with the relative strength index approaching overbought levels, though the indicator sits below its July peak, giving the stock further room to move into price discovery mode.

Let’s use technical analysis to project a potential upside target on Nvidia’s chart and also identify two crucial support levels worth watching.

Measured Move Upside Target

Investors can project a potential upside target by using the measured move technique, a trading tool that analyzes well-known chart patterns to forecast future price movements.

When applying the analysis to the chipmaker’s chart, we measure the distance between the rising wedge’s two upward sloping trendlines near their widest section and add that amount to the pattern’s top trendline.

This projects a target of $220 ($25 + $195), indicating the price could climb to around this level before encountering potential resistance and entering a period of consolidation.

Crucial Support Levels Worth Watching

The first support level to watch sits around $185. This area could attract buying interest near a range of corresponding price action on the chart stretching back to the start of the rising wedge pattern in early August.

Finally, a deeper retracement could see Nvidia shares test lower support at the $165 level. Investors may look for entry points in this location near a trendline connecting last month’s low with the end of a brief pullback in late July.

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As of the date this article was written, the author does not own any of the above securities.