Nvidia Stock Recovers DeepSeek Losses, Surges Above Key Moving Averages
Nvidia (NVDA) shares have rebounded strongly in February, erasing losses caused by the DeepSeek sell-off in late January. A 22% rally this month has pushed the stock above its critical 200-day and 50-day moving averages.
On Tuesday, Nvidia cleared a crucial hurdle as it reclaimed its January 24 closing price of $142.62, the session before the DeepSeek-induced decline. The stock has since retraced slightly, trading around $140.34.
Technical analysts believe that Nvidia has cleared key resistance levels and is poised for further upside potential. David Keller of Sierra Alpha Research highlights $130 as a key line in the sand that Nvidia has recently surmounted. Ari Wald of Oppenheimer & Co. identifies $140 as a pivotal resistance barrier to watch.
With these technical hurdles overcome, investors eagerly await Nvidia's upcoming earnings release next week. Vivek Arya of Bank of America notes that the earnings report could introduce volatility due to a potentially conservative first-quarter outlook as Nvidia transitions to Blackwell GPUs. However, he emphasizes that the long-term fundamentals remain sound.
"We anticipate positive momentum to resume as investors anticipate NVDA's robust new product pipeline and market expansion into robotics and quantum technologies at the upcoming GTC conference," Arya says.
Despite its recent gains, Nvidia's valuation is still considered attractive, trading at a 24x price-to-earnings ratio based on 2026 estimates. This is within the lower range of its historical valuation band.
Super Micro Computer, a company that integrates Nvidia GPUs into its server racks, stated on its recent earnings call that it anticipates revenue growth driven by the Blackwell rollout.
"Our transition from Hopper to Blackwell GPUs will drive accelerated growth in new generation platforms as supply ramps up," said Charles Liang, CEO and founder of Super Micro Computer.