Nvidia (NVDA) and Amazon (AMZN) are trading in or near their official buy zones on the Dow Jones Industrial Average, according to IBD market analysis, as artificial intelligence remains the dominant theme driving megacap tech leadership.

Market Context

The broader market has shown resilience amid mixed economic data, with technology stocks maintaining their relative strength. The Dow Jones Industrial Average has seen sector rotation favor AI-adjacent names while traditional industrials and financial components face headwinds from shifting rate expectations.

Analysis

Both Nvidia and Amazon remain in favor among institutional investors given their exposure to enterprise AI infrastructure spending. Nvidia's dominance in GPU computing continues to attract megacap allocation, while Amazon's AWS cloud platform positions it as a key beneficiary of corporate AI adoption trends. The stocks have held near prior entry points despite broader market volatility, suggesting institutional conviction remains intact.

Avnet (AVT), an electronics components distributor, and Okta (OKTA), an identity management software firm, are emerging on watchlists as potential breakouts approach. Avnet's exposure to industrial automation demand and Okta's enterprise security positioning present differentiated opportunities outside the megacap AI trade.

Key Numbers

- Nvidia has remained within 7% of its most recent entry point

- Amazon trading near its 50-day moving average as a potential pivot level

- Both names represent top-five weightings in the technology sector SPDR ETF (XLK)

- Avnet showing relative strength versus the S&P 500 over the past month

What to Watch

Traders should monitor Nvidia's ability to hold above key moving averages with next earnings approximately six weeks out. Amazon faces resistance at its prior highs around $200, while support zones sit near the 100-day line. For Avnet and Okta, watch for volume surges above 40% of average daily volume as potential entry triggers.

Avnet reports quarterly results in roughly three weeks, which could serve as a catalyst for directional movement. Okta's next earnings date has not yet been announced but historically falls in late August or early September.