In July 2025, Nvidia reached a new all-time high, largely fueled by positive developments in China. On July 9, the stock price rose to $160.98, making Nvidia the first company to achieve a market capitalization of over $4 trillion. This record mark underscores the company’s strong market position.
Factors Behind the Stock Rally
The stock rally was facilitated by several factors:
- Strong growth across various business sectors, particularly in the field of Artificial Intelligence (AI) and hardware, which has increased the global demand for Nvidia’s products.
- Positive signals from China, where recent developments have boosted expectations for future revenues and strengthened investor confidence.
- Technical indicators such as a Golden Cross supported the upward trend up to a price level of around $150.
Warnings of Overheating
Experts warn of a potential overheating of the stock: Following the steep rise, the stock is considered overbought, which could lead to short-term corrections. Technical indicators like the Relative Strength Index (RSI) show no confirmation of the recent breakout, indicating a lack of confirmation of the new high.
In summary, the news of Nvidia’s new all-time high is highly relevant for investors, as it signals opportunities through growth potential as well as risks of potential price corrections. The impulses from China play a central role in influencing Nvidia’s market conditions in the summer of 2025.