Nvidia (NVDA) Stock: Amazon AI Deal and Strong Earnings Support Rebound

TLDR

Table of Contents

Nvidia stock rebounds to $212.95 after five straight sessions of declines Tuesday.
Amazon orders two million Nvidia processors for its expanding warehouse robots.
Nvidia posts $96 billion revenue and beats Wall Street’s quarterly estimates.
Needham lifts third-quarter forecasts and keeps a $300 Nvidia price target.
Shares retest the 50-day average after Monday’s sharp technical breakdown Tuesday.

Nvidia (NVDA) stock rebounded Tuesday to $212.95, gaining 1.99% after five straight sessions of declines in regular trading. The recovery followed strong quarterly results and a major Amazon processor order that reinforced demand across Nvidia’s core markets. Monday’s selloff and Wednesday’s Federal Reserve decision still shape the stock’s near-term direction before the policy announcement.

NVIDIA Corporation, NVDA

Amazon Expands Nvidia Partnership With Major Processor Order

Amazon strengthened its partnership with Nvidia by ordering two million processors for use across its expanding warehouse robotics operations. The retailer also adopted Nvidia’s full-stack physical computing platform to support automation across its large global logistics network. The agreement gives Nvidia another major customer as demand broadens beyond traditional data center workloads and cloud systems.

The Amazon deal adds another growth channel for Nvidia as large companies increase spending on advanced computing systems and automation. Warehouse automation requires strong processing capacity, and Amazon continues expanding robotics across its fulfillment and distribution network. As a result, Nvidia gains added exposure to industrial systems alongside its established position in accelerated computing and data centers.

The partnership also arrives as markets debate the scale and pace of spending on artificial intelligence infrastructure and power needs. Industry leaders have called for slower development standards because of safety, energy use, and broader economic concerns. Amazon’s order shows that major companies continue committing large budgets to Nvidia-powered computing systems and automation projects.

Strong Earnings Reinforce Nvidia’s Growth Outlook

Nvidia reported adjusted second-quarter earnings of $2.22 per share, topping Wall Street’s estimate of $2.08 for the period. Quarterly revenue reached $96 billion, beating the $92 billion estimate and rising 106% from the same period last year. Adjusted earnings also increased about 120%, showing continued strength across Nvidia’s core businesses and major customer categories.

Management projected current-quarter revenue of $108 billion, which exceeded market expectations by roughly $3 billion after the earnings release. The outlook reflects ongoing demand from data centers, cloud providers, and companies expanding advanced computing capacity across multiple industries. Nvidia expects supply limits through fiscal 2028 as production remains below total customer demand for key processors.

Management expects current supply to meet about 70% of demand, keeping pressure on Nvidia’s production pipeline and delivery schedules. Needham also raised its third-quarter forecast to $2.46 per share and $109 billion in sales after the report. The firm maintained a buy rating and a $300 price target after reviewing Nvidia’s latest results, guidance, and demand trends.

Technical Signals Still Matter After Monday’s Selloff

Nvidia shares fell more than 7% below a 227.92 cup-with-handle buy point during Monday’s sharp decline in heavier volume. The stock also dropped below its 50-day moving average as selling pressure increased across the session. Tuesday’s rebound pushed shares back toward that key technical level after the stock triggered two clear sell signals.

Nvidia still holds strong fundamental ratings despite recent weakness in price action and softer institutional demand across recent weeks. Its Earnings Per Share Rating stands at 99, while its Composite Rating remains at 90 based on IBD measures. Its Accumulation/Distribution Rating sits at E, showing that large funds recently reduced exposure to the stock.

Funds own about 42% of Nvidia’s outstanding shares, according to Investor’s Business Daily MarketSurge data on institutional ownership. The stock gained 10% in August, its strongest monthly rise since April, while 12-month relative performance remained less dominant. For now, strong earnings and Amazon demand support the rebound, while a firmer technical recovery remains the next major hurdle.

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