The momentum in artificial intelligence is impossible to ignore, especially after the recent announcement from President Trump outlining a massive $500 billion infrastructure push for AI development.

The creation of Stargate—a collaboration between OpenAI, SoftBank, and Oracle—is set to generate 100,000 jobs and provide the necessary energy production to support this booming sector.

With AI at the forefront, Nvidia (NVDA) stands out as one of the biggest beneficiaries due to its dominance in AI hardware and infrastructure.

But beyond the news, what really caught my attention is the technical setup that could be signaling a major move ahead.

Let’s dive into the technical picture.

What Caught My Eye?

The S.A.M. AI Scanner flagged NVDA due to these bullish factors:

• A daily squeeze forming—a powerful technical pattern where price compresses like a coiled spring before a potential breakout.
• Stacked EMAs on both the daily and weekly charts, signaling strong bullish momentum across multiple timeframes.
• Trading just below its 52-week high of $153.13, with the stock building energy for what could be its next leg higher.

These are the exact types of setups I look for when scanning for explosive trading opportunities.

The Technical Picture

Squeeze Setup

The S.A.M. AI Scanner identified a daily squeeze on NVDA, which is one of my favorite indicators for big moves. Here’s why this is important:

A squeeze forms when Bollinger Bands compress inside the Keltner Channels, signaling that price action is unusually tight. Think of it as a spring that’s being wound up—once that energy is released, the resulting move can be explosive.

Currently, NVDA is consolidating just below its 52-week high of $153.13, a level that often draws in institutional interest. When a stock consolidates near its highs, it’s often a sign that larger players are building positions before driving the next move.

The beauty of this setup is that it gives us a clear level to trade against:

• A breakout above $153.13 could trigger the release of this squeeze, leading to a significant move higher.

EMA Stack Analysis

The chart is showing an ideal EMA stack, with shorter-term moving averages (8, 21, 34, 55) perfectly aligned above longer-term ones. This alignment is a hallmark of a strong bullish trend and tells us that both the short-term momentum and the longer-term trend are pointing up.

Key technical highlights:

• Daily EMAs are stacked in perfect alignment, providing strong support for the current price action.
• Weekly EMAs confirm the broader uptrend, showing that NVDA is supported by longer-term bullish momentum.
• Higher lows forming across multiple timeframes, reinforcing the bullish structure.

This kind of structure is exactly what I focus on when looking for setups with high probability for success.

Company Outlook

While my primary focus is on the technicals, NVDA’s fundamental story aligns perfectly with this setup. As a leader in AI hardware, particularly GPUs (graphics processing units) that power machine learning applications, NVIDIA is well-positioned to benefit from the current AI boom.

The recent AI infrastructure announcement is yet another catalyst that could drive significant demand for NVDA’s products, making this a strong setup both technically and fundamentally.

Your Action Plan

I don’t currently have a position in NVDA, but this is a textbook setup I’ll be watching closely. But I’ll be scanning the options market to see if there’s a way to play it with calls.

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