Nvidia has skyrocketed 5.6% in just 24 hours, reaching $129.93 a powerful recovery of nearly 50% from its April low of $86.62. This explosive move is being driven by a major artificial intelligence deal with Saudi Arabia, setting the stage for Nvidia’s next big breakout.

The stock has not only rebounded sharply but also decisively broken above its 200-day moving average, signaling a robust shift from bearish to bullish territory. At present, the 50-day moving average stands at $114.53, while the 200-day moving average is positioned at $107.27. These two levels now act as critical support zones strongholds that are helping fuel investor confidence and propel the price higher.

Momentum Indicators: The Relative Strength Index (RSI) stands at 64.43 and indicates the presence of bullish strength, although it still remains below overbought levels of 70. This means Nvidia still has upward room to move. The Moving Average Convergence Divergence (MACD) is 0.69, with the MACD line crossing above the signal line, indicating strong bullish momentum.

Target Resistance: Nvidia is eyeing the $150 resistance level in the short term, which also acts as a psychological barrier and aligns with previous highs.

Support Levels: Immediate support is at $115 (50-day moving average), while a more solid base lies at $96, reflecting the stock’s recent lows and offering a cushion in case of a pullback.

Saudi AI Deal Sparks Market Excitement

The key catalyst behind this rally? A game-changing AI deal between Nvidia and “Humain”, a new Saudi AI firm backed by the kingdom’s Public Investment Fund. Nvidia has agreed to supply hundreds of thousands of high-end GPUs for a 500-megawatt AI data center powered by an astonishing 18,000 “GB300” chips, some of the most advanced processors Nvidia offers.

More media coverage was obtained during U.S. President Donald Trump’s tour of the Middle East in which he strongly advocated for increased AI cooperation between the U.S. and Saudi Arabia. For Saudi Arabia, this is a strategic move to position itself as the powerhouse of AI innovation globally, whereas, Nvidia’s tech would be considered as the basis.

Wider Market Reacts With Optimism

The ripple effects were felt across the broader stock market. The S&P 500 moved into positive territory for the year, lifted in part by Nvidia’s success and a renewed wave of optimism in the tech sector. Investors are increasingly confident in the future of AI, especially with governments now backing technological alliances.

Nvidia Eyes $150 And Possibly Beyond

With strong momentum and technical strength, Nvidia seems well-positioned to reach the next major resistance at $150. This level aligns with previous highs and marks a key psychological barrier. If Nvidia can surpass this, the next target is to retest it’s all-time high of $153.13, last seen during a past bullish wave. However, if the stock hits resistance at $150, a temporary pullback toward $115 is possible. This wouldn’t signal a reversal rather, it would be a natural consolidation before another upward move.

Adding to the tailwinds are improving U.S.-China trade relations, which have eased market fears and boosted demand for AI-related tech. Nvidia continues to benefit from this climate, as well as surging interest in advanced GPU-powered solutions.