Mr. Trump’s Call: A 30% Boost for Nvidia? How Delightfully Absurd!

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Pray, allow me to impart the most extraordinary news concerning the stock of Nvidia (NVDA), which has been rallying with a persistence most remarkable, seven consecutive sessions since the breakout on May 6, ascending to the lofty sum of $227 by May 13. This movement, I am informed, resides within a 32% measured move setup, and the catalysts behind it have multiplied in a manner most fortuitous.

Imagine, if you will, the surprise when Mr. Jensen Huang, CEO of Nvidia, was summoned by none other than President Trump to join his Beijing delegation-a last-minute addition, no less! This has placed a staggering $50 billion in China AI chip opportunities back in play, a sum so vast it quite takes one’s breath away.

The gentlemen of Wall Street, ever so eager to weigh in, have raised or reiterated their price targets for Nvidia in the past 48 hours. At least five firms, mind you! Earnings are expected on May 20, though the Chaikin Money Flow whispers a more cautious tale beneath the exuberance of the rally.

Nvidia’s Bull Flag Breakout: A Target of $267, They Say

The Nvidia stock chart, I am told, broke out of a bull flag and pole pattern on May 6, 2026. The pole rallied 31.92% across April and early May, and the flag resolved upward with volume most robust on the breakout candle. Every session since May 6 has closed in the green, a streak most enviable. The measured move projects a 32% rally from the breakout zone, with $267 as the textbook target.

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The catalysts, as I mentioned, have stacked up most impressively. Mr. Huang, initially absent from the executive list, was personally summoned by Mr. Trump, who called him directly. Mr. Huang, with alacrity, flew to Alaska to board Air Force One. Beijing, it seems, is most eager for greater access to Nvidia’s H200 AI chips, a market Mr. Huang has valued at $50 billion.

Nvidia, $NVDA, suffered a $4.5B setback in the July quarter after Mr. Trump introduced the original license requirement.

Mr. Huang declared that the ban on Nvidia’s chip sales to China would result in a $50 billion loss in 2-3 years.

It was then that Mr. Huang knew he must act.

– The Kobeissi Letter (@KobeissiLetter) August 11, 2025

Wall Street, ever the optimist, has reinforced this setup. Mr. Vivek Arya of Bank of America raised the firm’s Nvidia price target to $320 from $300 on May 13, citing a $1.7 trillion total addressable market for 2030 AI data centers. Mr. Aaron Rakers of Wells Fargo raised his target to $315 from $265 on May 12, employing a new gigawatt-capacity model. Mr. Christopher Rolland of Susquehanna raised his to $275 from $250, aligning with the chart targets. Citi and Oppenheimer, not to be outdone, reiterated $300 and $265, respectively.

The Nvidia stock price now resides between the breakout zone and the target, with earnings due May 20. The next signal, I am informed, lies in the institutional flow data.

Money Flow: A Quieter Warning, Most Intriguing

The Chaikin Money Flow (CMF) indicator, which measures the volume-weighted balance of buying and selling pressure, sits at 0.24 on the Nvidia daily chart. While in positive territory, it has trended lower since late April, even as the stock price has risen. This, I am told, is a bearish divergence on the daily chart.

This divergence does not invalidate the breakout, but it suggests a softening of big-money flow, though it remains net positive. The pattern is consistent with profit-taking or hedging ahead of the May 20 earnings report.

The put-call ratio data adds another layer. The Nvidia put-call volume ratio sits at 0.32 on May 13, up from 0.29 around the May 6 breakout. The open interest ratio has eased to 0.80 from 0.81 over the same period. This increase in volume-based puts, alongside steady open interest, fits the same picture as the CMF divergence.

Some hedging is being added to the rally, but overall positioning remains heavily call-skewed, with put-call ratios well below 1.0. The setup stays bullish, though with a prudent layer added.

Nvidia Stock Price Levels: $227, the Decision Point

Nvidia stock trades at $226, just shy of $227, the 0.618 Fib zone of the recent range. This level, I am informed, is the structural pivot. A daily close above $227 opens the path to $235, $247, and the textbook target of $267. Beyond that, the 1.618 extension at $279 aligns with Susquehanna’s price target. The 2.618 extension at $332 sits just above Bank of America’s $320 target.

The downside levels are equally important. Support stacks at $214 and $207. A daily close below $207 would weaken the breakout structure. The deeper invalidation sits at $194, the 0 Fibonacci anchor. A break under $194 would weaken the entire bullish structure.

A daily close above $227 keeps the path to $267 open and brings the analyst price ladder into view. A close below $207 hands control to the CMF divergence and risks a deeper consolidation toward $194. May 20 earnings will likely break the tie, and we shall see if this tale of financial intrigue ends in triumph or caution.

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2026-05-13 20:21