Nvidia Rises for Seven Straight Days, AI Chip Leader’s Stock May Break All-Time High

TradingKey - On Thursday (April 10), Nvidia ( NVDA) shares closed up about 1% at $183.94, marking its seventh consecutive session of gains and the longest winning streak since November 2023. While the magnitude of this rally has not been excessive, its significance lies in the market's renewed willingness to buy into Nvidia's AI growth story after months of repeated volatility.

Source: TradingView

There are two primary reasons for this rally. On one hand, the market continues to bet on AI infrastructure demand; on the other, it is digesting short-term disruptions caused by the situation in the Middle East.

Geopolitical uncertainty surrounding Iran had previously weighed on AI chip stocks like Nvidia, but as expectations for a de-escalation of the situation grew, capital began flowing back into the semiconductor and AI sectors.

At the same time, Nvidia's share price has tested the $165 support level twice in the past few months without breaking below it, suggesting that the upward trend remains intact. Investors have not questioned the long-term thesis; they are simply waiting for a clearer catalyst.

From a fundamental perspective, Nvidia's core logic remains unchanged. CEO Jensen Huang publicly stated in mid-March that the revenue opportunity for Nvidia's AI chips could reach at least $1 trillion by 2027, an assessment that reflects the company's strong confidence in the sustainability of AI infrastructure demand. The focus of market debate has shifted from whether AI will continue to expand to whether the pace of expansion can continue to support current valuations.

However, this rally has also exposed a reality: Nvidia is no longer the type of stock that easily enters a one-way upward climb.

Looking at the price action, although Nvidia recorded a seven-day winning streak, it remains about 13% below the all-time high reached last year, and the stock is still down slightly overall for the year.

This suggests that the market is becoming more discerning regarding Nvidia. Capital is no longer just looking at the broad AI trend; instead, it is focusing on customer capital expenditure, order cadence, and whether high valuations can continue to be supported by earnings performance.

On an industry level, Nvidia's rebound is not an isolated event. The entire chip sector has been warming up recently, as expectations for AI infrastructure investment remain strong and semiconductor ETFs have maintained positive returns year-to-date. As one of the most pivotal companies in the AI value chain, Nvidia often serves as the first to reflect shifts in investor sentiment.

While this seven-day rally does not necessarily mean Nvidia will immediately enter a new round of one-way gains, it at least indicates that the market's long-term outlook for AI demand remains positive, though the short-term preference is for incremental recovery rather than chasing prices higher in one go.

Moving forward, whether Nvidia can sustain this winning streak depends on two key factors: first, whether AI capital expenditures by large cloud providers and data centers continue to expand, and second, whether geopolitical risks continue to weigh on risk appetite.

If these two variables do not deteriorate significantly, Nvidia will likely remain one of the most watched core assets in the AI trade; however, if the market shifts its focus back to valuations and the timing of profit realization, the stock could easily enter another period of volatility.