The unquestionable stock market leader, NVIDIA, is now entering a corrective phase following the record highs in capitalization set from July to September.
However, several fundamental factors signal a further rise in the company’s share price. NVIDIA’s historical earnings per share (EPS) growth rate is 89.6%. This year, the indicator is expected to increase by 48.4%, which is higher than the tech industry’s average of 28%. The firm’s annualized cash flow expansion is about 140.5%, exceeding that of many competitors. The industry itself averages only 18.8%. A similar long-term (3–5 year) figure for NVIDIA is 87.5%, while the sector stands at 0.6%. The company’s outlook for the current year is now being revised upward. For instance, the consensus for 2025 has increased by 4.3% over the past month.
Major companies like NVIDIA are currently gaining strong upward momentum and may weather tough times much easier (than smaller ones) because of their large safety margins.
Technically, NVIDIA share prices could drop to the support zone (marked by a green rectangle on the chart) in the coming weeks. Opening buy positions near the level of $153.0 is strongly recommended. If a rebound from the support does not occur, traders should fix their losses at $130.0.
The overall recommendation is to buy NVIDIA from $153.0. Profits should be taken at $185.0. Stop Loss could be set at $130.0.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
