Nvidia stock on track to end week strong: is the rut over?

Nvidia shares rose about 3% to $188.53 in early trading on Friday, putting the stock on track for an eighth consecutive day of gains.

The rally follows a softer-than-expected inflation reading for March, which supported broader markets.

The S&P 500 edged 0.2% higher, extending its own seven-day winning streak.

Nvidia had already closed higher for seven straight sessions through Thursday, marking its longest run of gains since November 2023, according to Dow Jones Market Data.

The latest gains are part of a broader move in equities rather than a Nvidia-specific surge.

Rival Intel has also advanced for seven consecutive sessions, rising about 50% over that period.

By comparison, Nvidia has gained roughly 11% during the same stretch.

Despite the rally, Nvidia shares remain rangebound between $165 and $195, a band they have traded within for several months.

Investors have been looking for catalysts that could push shares out of this range.

Stability in geopolitical conditions is seen as one such trigger, as ongoing tensions have dampened demand for risk assets.

AI spending questions persist

A key issue for investors remains the sustainability of artificial intelligence-related spending.

Large technology companies—often referred to as hyperscalers—have been the primary drivers of demand for Nvidia’s chips through heavy investment in data centres and AI infrastructure.

However, investors are increasingly questioning how long this pace can continue and when it will translate into meaningful returns.

Major customers such as Microsoft, Alphabet, and Amazon continue to invest aggressively, but confidence in near-term monetisation has weakened.

At the same time, software stocks have come under pressure amid concerns that AI could disrupt traditional business models and compress margins.

Huang urges long-term view on AI

Jensen Huang used a recent appearance at the HumanX conference in San Francisco to advocate for a long-term approach to artificial intelligence investment.

He compared the current phase of AI adoption to the early stages of the Industrial Revolution and encouraged business leaders to remain patient.

“I would err on being more playful, on being more open-minded, on being less sceptical, less cynical, on being more willing to experiment,” Huang said.

“Don’t worry about wasting time, wasting money. There are times when you want to have investment, no return.”

He added that focusing too narrowly on return on investment could limit opportunities for discovery.

Huang’s stance reflects Nvidia’s own position at the centre of the AI boom.

The company’s revenue is on track to rise more than tenfold from 2023 levels in the current fiscal year, while maintaining high profitability.

The broader debate highlights a key tension in the market. While near-term uncertainties around geopolitics, competition, and spending remain, long-term expectations for AI-driven growth continue to support valuations.