NVIDIA has just had its largest day of the year so far. This exceeds forecasts, with Q2 results now publicly announced on August 26. Revenue was reported at $96.2 billion versus expectations of $92.2 billion. Similarly, earnings per share reached $2.22 versus a prediction of $2.09. The shares gained nearly 8% during the next trading day, and current trading stands at just below $226 – near its all-time highs.
Key price levels to watch
This breakthrough means NVDA is sitting just below its yearly high of $236.54. If it goes above this level then it can reach higher without resistance in the way. On the downside, the pre-earnings close near $213 will provide support, while a stronger support level is seen near $191, which was valid during July’s decline. The stock will keep rising as long as it is above $213.
Why the story looks strong
NVIDIA’s AI chip demand is still exceeding expectations for yet another quarter. The company is rumored to be acquiring the open-source AI platform Hugging Face, thus expanding its AI ecosystem further. The analysts on Wall Street are very optimistic, with 58 analysts giving the stock a buy rating and only one a sell rating. The consensus 12-month target price is higher than $300, with some estimates going up to $500.
In case of maintaining the present bullish momentum, a target price range of around $250-300 looks realistic for year-end 2026. If the stock crosses the $236.54 mark, $260 becomes possible, and $300 is achievable in case the demand for AI products remains high throughout the rest of the year. Provided that NVDA shares stay above $213, the overall bias into year-end remains bullish.
Why the fundamental story looks strong
NVIDIA continues to grow rapidly, producing revenues of $253.5 billion over the twelve months before now, and achieving an enviable profit margin of around 63%. Every quarter, the demand for AI chips exceeds the optimistic predictions made by the analysts. NVIDIA may acquire Hugging Face, an open-source AI platform, which will help to consolidate the software segment also. The share price is near its peak level, while its forward PE ratio is around 21, which is acceptable due to the continuous revenue growth. On Wall Street, the investors, represented by around 58 experts, remain optimistic regarding NVIDIA shares (58 Buy versus one Sell). The average price target for the share in 12 months is set above $300.
In terms of possible estimates of NVIDIA shares by the end of 2026, assuming that the current growth trend is maintained, $250 to $300 would be sufficient. If the price exceeds $236.54, the stock should be able to rise to $260, being capable of reaching $300 in case AI demand remains stable throughout the year. Provided that NVDA shares do not fall below $213, the outlook for traders will remain bullish.