Quick overview

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Nvidia (NVDA) closed at a record high on Wednesday, reclaiming its position as the most valuable company globally.

The move pushed the company’s market capitalization to nearly $3.77 trillion, surpassing Microsoft’s (MSFT) $3.66 trillion amid reports that CEO Jensen Huang stated at the tech giant’s annual shareholder meeting on Wednesday that the company has a multitrillion-dollar growth opportunity in AI and robotics.

Positive Wall Street commentary also supported the stock, with analysts noting that the chipmaker is poised to benefit from increasing demand for sovereign AI, as nations leverage the technology to address critical cybersecurity, healthcare, defense, industrial, and financial needs.

Nvidia’s stock increased within a rising wedge last month after surpassing its 200-day moving average (MA), and on Wednesday, it broke out of the pattern. Moreover, the relative strength index supports bullish momentum; however, a reading above 70 warns of overbought conditions, which could lead to short-term profit-taking.

It’s also worth noting that the 50-day MA is about to cross above the 200-day MA, forming a bullish golden cross, a chart signal indicating the start of a new upward trend.