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Nvidia surges to the top: Two powerful bullish counts suggest big moves ahead

Nvidia overtakes Microsoft as world’s most valuable company

In a historic market shift, Nvidia has officially overtaken Microsoft to become the most valuable company in the world, boasting a jaw-dropping market capitalization of $3.45 trillion. This monumental achievement came on the heels of a 3% rally in NVDA stock, driven by surging demand for its next-generation AI chips. These chips are the technological backbone powering global AI titans like OpenAI, Meta, and many others.

With a staggering 69% revenue growth, Nvidia has firmly cemented itself as the cornerstone of the AI revolution. Its unmatched dominance in both semiconductor technology and AI acceleration continues to attract massive investor interest, pushing the stock to fresh all-time highs.

Now, the big question for traders and investors alike is: where does Nvidia go from here?

Two key bullish counts on NVDA: The roadmap ahead

The recent explosive move in NVDA's price action opens up two compelling Elliott Wave scenarios that traders should keep on their radar. Both interpretations are bullish but with slightly different short-term implications. Here’s how they stack up.

Scenario 1: Completing a 5-Wave Impulse Before a Larger Correction

Chart

In the first count, NVDA appears to be in the final stages of a classic 5-wave impulse structure. This implies we are currently wrapping up wave 5 of a larger degree, which could soon culminate in a more substantial corrective phase—potentially a wave (2) or (4) on a higher degree.

Key observations

  • NVDA has broken out of a corrective channel, establishing a clean uptrend.

  • Clear subwaves (i)-(ii)-(iii)-(iv)-(v) are visible within wave 1 of the new cycle.

  • Momentum indicators (RSI) are showing bearish divergence, suggesting short-term exhaustion and the potential for a pullback.

This structure favors profit-taking in the near term as NVDA may enter a deeper, yet healthy, correction before resuming the next major leg up. However, this doesn't mean the rally is over—only pausing before it continues.

Scenario 2: Bullish 1-2, 1-2 Setup — The Launchpad for a Massive Rally

Chart

The alternate count paints an even more explosive picture. In this setup, NVDA may be in the midst of a 1-2, 1-2 bullish structure, suggesting that what we’ve seen so far is just the prelude to a much larger third wave—the most powerful of all Elliott Waves.

Why This is Bullish:

  • This count implies that NVDA is just getting started in a powerful upward cycle.

  • Pullbacks will likely be shallow and bought up aggressively.

  • This scenario sets up for extended gains beyond current highs, possibly targeting $160–$180 in the next major leg.

This is the kind of setup that smart money loves—buying early in a third wave often yields massive risk-to-reward opportunities.

So what should traders observe now?

The truth is, both counts are bullish. The difference lies in timing and depth of corrections.

  • If Scenario 1 plays out, we should prepare for a healthy retracement, ideal for re-entry or scaling into long positions.

  • If Scenario 2 is in motion, then NVDA could soon enter a vertical ascent, and any dip would be minimal.

Smart traders are prepared for both outcomes, using stop losses, layered entries, and watching volume and momentum closely.

Conclusion

Nvidia's dominance is not just about valuation anymore—it's about vision and execution in the AI space. Whether it pulls back slightly or ignites a new wave 3 higher, both Elliott Wave counts support one undeniable truth:

Nvidia’s bull market is alive and well.

Author

Zorrays Junaid

Zorrays Junaid

Alchemy Markets

Zorrays Junaid has extensive combined experience in the financial markets as a portfolio manager and trading coach. More recently, he is an Analyst with Alchemy Markets, and has contributed to DailyFX and Elliott Wave Forecast in the past.

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