Nvidia Rebounds After Brief Slide to $224.41

The rebound came as Nvidia held above its 50-day moving average of $209.28 and remained well above its 200-day average of $196.11, a sign that the longer-term uptrend is still intact despite recent volatility. RSI readings around 49 suggest the stock is no longer stretched after running hot in August, while the tightening gap between the MACD and its signal line points to a market still searching for direction.

That matters for investors because Nvidia has become the cleanest barometer of appetite for AI spending. When the stock gets hit, fund flows often rotate into semiconductors, data-center suppliers and related AI names; when it bounces, it can reignite the entire trade. Adalytica’s earnings sentiment gauge for Nvidia is at 89, labeled “Extreme Greed,” underscoring how quickly sentiment has swung back after the recent pullback.

The broader AI sentiment backdrop remains fragile, however. Adalytica’s separate AI sentiment gauge sits at just 7, or “Extreme Fear,” suggesting traders are still highly reactive to any sign of slowing momentum, valuation pressure or delay in the AI buildout. That split between bullish Nvidia-specific positioning and weak broader AI sentiment helps explain why every dip in the stock is being watched so closely.

For now, the narrative remains the same: bearish calls on Nvidia have repeatedly been punished, and traders are still willing to fade the panic. The next catalyst is likely to come from the company’s next earnings update or any fresh signal on AI infrastructure demand, which could determine whether the rebound extends or the stock slips back toward support near its 50-day average.