Nvidia (NVDA) Shares Jump 4%—Can the Rally Reach $236?

TLDR

• Nvidia shares rose over 4% to close at $219.22, their highest level in two months.
• The stock gained 10.47% over five trading sessions as AI demand remained strong.
• Higher spending plans from Microsoft, Amazon, Alphabet, and Meta supported investor confidence.
• SpaceX said it plans to use Nvidia chips for its future AI computing infrastructure.
• Nvidia shares broke above a descending channel formed since May, signaling stronger momentum.

Nvidia (NVDA) shares rose more than 4% on August 5, closing at $219.22 and reaching their highest level in two months. The stock has gained 10.47% across five sessions as investors respond to stronger AI spending plans and fresh demand signals from major technology companies.

Nvidia Shares Gain on AI Spending

Microsoft, Amazon, Alphabet, and Meta reported capital spending above market forecasts during their latest earnings updates. Each company also plans to expand spending on data centers, AI systems, and cloud infrastructure over the coming quarters.

Those plans support demand for Nvidia GPUs, which remain widely used in AI training and computing systems. Investors now expect large cloud providers to keep buying advanced chips as they build more computing capacity.

SpaceX added another source of demand after Elon Musk said the company would use Nvidia chips for its future AI computing infrastructure. He made the statement during SpaceX’s first earnings call on August 4.

The announcement strengthened market confidence in Nvidia’s position in AI hardware. It also extended the recent stock rally as traders assessed the size of possible future orders from SpaceX and other large technology buyers.

Technical Setup Points to Key Levels

Nvidia shares moved above a descending channel that had formed since May, which traders often view as a change in short-term direction. However, the stock pulled back from its intraday high and formed a long upper shadow.

That price action shows sellers remain active near current levels. A pullback toward the former channel boundary could place the stock between $200 and $210. Holding above $200 may keep the upward trend in place before earnings.

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Nvidia will report fiscal second-quarter results on August 26. Analysts currently expect revenue near $91.8 billion, close to double the level reported a year earlier. Traders often take positions before major earnings reports, which can increase price swings.

The company’s 2026 AI chip capacity is reported to be almost fully booked. Bank of America, Goldman Sachs, and other firms continue to rate the stock highly, with price targets ranging from $250 to $300. Nvidia shares may test the record area near $236 if buying demand remains steady during August trading.