Nvidia’s (NASDAQ: NVDA) renewed momentum has triggered a key technical indicator that could propel the stock above $1,000 within the next two years.
Specifically, Nvidia has formed a bullish golden cross, a pattern that occurs when the 50-day moving average (MA) crosses above the 200-day moving average for the first time since January 2023.
Historically, this formation has marked the beginning of significant rallies, and Nvidia has been no exception. Notably, the last time NVDA experienced a golden cross, its shares surged 695% over the following two years.
If history repeats itself, Nvidia’s current share price of $157.75 could climb to over $1,200 by 2027.
Nvidia stock fundamentals
While technical indicators alone do not guarantee future performance, the return of the golden cross, supported by Nvidia’s strong fundamentals, particularly in artificial intelligence (AI), sets the stage for potential further gains.
Indeed, NVDA stock has recovered after being hit with several setbacks, including uncertainties stemming from the trade tensions between the United States and China, as well as emerging competition from new AI players such as DeepSeek AI.
In the meantime, Wall Street’s confidence in Nvidia’s role at the core of the AI infrastructure boom is also growing.
For instance, Loop Capital projects that AI and AI accelerators compute spending, driven by hyperscalers, sovereign entities, and enterprises, could reach $2 trillion by 2028.
Positioned at the center of this expansion, Nvidia stands to benefit significantly, with CEO Jensen Huang noting that every gigawatt of AI compute demand could translate to $40 and $50 billion in revenue.
Reflecting this optimism, Loop Capital analyst Ananda Baruah raised his price target for Nvidia from $175 to $250, suggesting that the company could reach a $6 trillion market cap if AI infrastructure spending meets expectations.
However, investor sentiment could face headwinds as insider selling, including by Huang himself, has picked up, potentially signaling caution at the top.
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