NVIDIA (NASDAQ:NVDA) shares pulled back following its earnings report and are now approaching a key support level as Jensen Huang eyes the vast $200 billion CPU market. It ended the week at $215, slightly above the key support at $212.



<h2>NVIDIA Is Betting On The $200 Billion CPU Market</h2>



Jensen Huang, NVIDIA's CEO, has fueled the company to become a $5.2 trillion juggernaut by dominating the Graphics Processing Unit industry, which has become essential in AI. Its Blackwell chips are now used to power the biggest AI companies like Microsoft and OpenAI.



Now, the company is focusing on the Central Processing Unit (CPU) industry, making it a key competitor to Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC). In a statement today, Huang predicted that this is a massive $200 billion industry. His prediction of the market size includes China, a crucial market in the industry.



There are early signs that demand for CPUs is soaring as companies shift to agentic AI. Agentic AIs are computer programs trained to perform certain tasks, like programming and shopping. The company is now working on the Vera Rubin platform that it hopes will catch up with its top competitors.



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A good example of the rising demand for CPUs is the recent Intel earnings, which showed that its Xeon server CPU continued doing well. It even sold some of the CPUs that it had avoided selling in the past few quarters as demand surged. AMD also published strong earnings driven by its CPU and GPU business.



Huang's statement came shortly after the company published strong financial results and forward guidance. Its first-quarter revenue jumped to $81 billion in Q1 and the management expects it to soar to $91 billion in Q2. The Q2 figure may be highly conservative as the company did not include its Chinese business. The US has allowed ten companies to buy its H200 chips.



<h2>NVIDIA Stock Price Has Dropped to a Crucial Support Level</h2>



The daily chart reveals that the NVDA stock price jumped to a record high of $236 earlier this month. This rally happened after it formed the highly bullish cup-and-handle pattern whose upper side was at $215.



It made a bullish breakout above this resistance level on May 7. Now, technicals suggest that the stock is falling so that it can retest the cup's upper side. This is known as a break-and-retest pattern and is a common bullish continuation sign. 



<figure class="wp-block-image size-large"><img width="1024" height="567" src="https://imageproxy.pbkrs.com/https://editorial-assets.benzinga.com/wp-content/uploads/2026/05/23130017/NVIDIA-Stock-1024x567.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="NVIDIA stock" original-src="https://imageproxy.pbkrs.com/https://editorial-assets.benzinga.com/wp-content/uploads/2026/05/23130017/NVIDIA-Stock-1024x567.png"/></figure>



NVDA stock price chart | Source: TradingView



Should this occur, the stock would likely resume its uptrend and retest its all-time high. A break above that level would signal further gains, potentially pushing toward $300, in line with Wall Street’s consensus.



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Image: Shutterstock

NVDA Q1 just dropped. Revenue USD 81.6 billion (+85% YoY). Adjusted EPS +140% YoY. Data center revenue USD 75.2 billion (~92% of total). Every line beat consensus. Q2 guidance: USD 91 billion, and that excludes any China data center revenue. The board also added USD 80 billion to the buyback authorization and lifted the quarterly dividend by 24x.&nbsp;On paper, all green. But the stock dropped over 3% after-hours before clawing back. The market has gotten used to bigger NVDA beats, and a 3.1% top-line surprise wasn't enough this time. Layer on repricing noise from a revised reporting framework, and at the USD 6 trillion mark, the disagreement is real.&nbsp;Continued AI king run, or first real high-altitude correction?

NVDA Q1 just dropped. Revenue USD 81.6 billion (+85% YoY). Adjusted EPS +140% YoY. Data center revenue USD 75.2 billion (~92% of total). Every line beat consensus. Q2 guidance: USD 91 billion, and that excludes any China data center revenue. The board also added USD 80 billion to the buyback authorization and lifted the quarterly dividend by 24x.&nbsp;On paper, all green. But the stock dropped over 3% after-hours before clawing back. The market has gotten used to bigger NVDA beats, and a 3.1% top-line surprise wasn't enough this time. Layer on repricing noise from a revised reporting framework, and at the USD 6 trillion mark, the disagreement is real.&nbsp;Continued AI king run, or first real high-altitude correction?

NVDA Beats Every Line Yet Stock Wobbles?

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NVIDIA shares have pulled back to a key support level of $212 after its earnings report, closing at $215. CEO Jensen Huang is targeting the $200 billion CPU market, competing with AMD and Intel. The company anticipates strong demand for CPUs as AI adoption rises. Following a record high of $236, technical indicators suggest a potential bullish continuation pattern, with a possibility of reaching $300 if the stock breaks above its all-time high.

- NVIDIA shares have pulled back to a crucial support level of $212 after reporting earnings, ending the week at $215.  
- CEO Jensen Huang is now targeting the $200 billion CPU market, competing with AMD and Intel, amid increasing demand as companies adopt agentic AI.  
- Strong demand indicators were seen in Intel and AMD's earnings, while NVIDIA's revenue surged to $81 billion and is expected to reach $91 billion, excluding its Chinese operations.

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NVIDIA Stock Nears Key Price As Huang Pitches $200 Billion CPU Market