Nasdaq 100: Nvidia at a Technical Crossroads – Stock Market Awaits Key Signal

If Nvidia clears $137.80 with strong volume, the next upside target could be the recent high of $153.13. On the downside, failure to break through could bring the 200-day moving average at $124.04 back into focus.

Should Traders Buy Before Earnings?

Evercore ISI analyst Mark Lipacis is bullish on Nvidia ahead of its Feb. 26 earnings report. He expects a strong performance, citing continued demand outpacing supply for Nvidia’s high-end chips. Concerns surrounding the company’s next-generation Blackwell chip have weighed on the stock, but Lipacis believes these worries are overblown.

He argues that even if the B100 chip faces delays, customers will continue buying the existing H100 models, mitigating any revenue impact. His “tactical outperform” call suggests he anticipates a favorable earnings-driven move.

AI Competition and Market Sentiment

Nvidia has faced recent skepticism due to advances in artificial intelligence, specifically concerns that firms could develop cheaper alternatives to its GPUs. Reports surrounding DeepSeek, a Chinese AI software firm, suggested that AI models could become more cost-efficient, raising questions about future GPU demand.

However, Lipacis remains confident that Nvidia’s ecosystem is too advanced for competitors to displace it in the near term. He argues that hyperscale cloud providers still favor Nvidia’s platform due to its robust software ecosystem and development tools, estimating the company remains 5-10 years ahead of potential rivals.

What’s Next for Nvidia?

With earnings approaching, Nvidia’s price action at the 50-day moving average will be a key indicator of market sentiment. A clean breakout could attract momentum buyers and set up a retest of $153.13, while a failure could bring renewed pressure toward $124.04.