It's another tough day in the stock market, with the Nasdaq down more than 1%. In morning trade, Nvidia (NVDA - Get Report) shares were doing well, up more than 1% after Goldman Sachs analysts placed the stock on its conviction buy list.

However, even Nvidia couldn't hold up to the selling pressure, with shares now down almost 1%.

It's been a bumpy ride for Nvidia this month, as the waves of selling in the broader market have taken their toll. Shares brushed up against the $290 level several times this month before tumbling lower. Now bouncing just under $240 a share, we've seen a big correction in what has been one of the market's strong stocks.

In any regard, Goldman took Nvidia up to conviction buy with a $305 price target. Based on current prices, that implies more than 27% upside to current prices. For the record, Goldman also made other moves in the semiconductor space.

They left Xilinx (XLNX - Get Report) as a buy, while upgrading both NXP Semi (NXPI - Get Report) and Keysight Technologies (KEYS - Get Report) to buy from neutral. For NXP and Keysight, Goldman has price targets of $85 and $76, respectively.

The analysts also gave a boost to Texas Instruments to neutral from sell with a $107 price target. On the more bearish side, Goldman also took Teradyne (TER - Get Report) down to neutral from buy and dropped Analog Devices (ADI - Get Report) and Maxim Integrated (MXIM - Get Report) to sell from neutral.

How to Trade Nvidia Stock

Clearly Nvidia is the biggest name on this list, so how should investors proceed to trade it? TheStreet's own Jim Cramer has argued that Nvidia could report a less-than-stellar earnings report this quarter. Worth noting, though, is that Nvidia is back in his club's bullpen after having been a big winner for the Action Alerts PLUS Charitable Trust Portfolio.

Nvidia has quietly been grinding higher this year. I say quietly because, even though shares are up about 24% on the year, the action has been relatively choppy in a slowly advancing upward channel.

Shares are up more than 260% over the last two years and more than 760% over the past three years.

Looking at the chart above, shares are clinging to the bottom of channel support and consolidating below the 200-day moving average. That's not exactly a good sign, particularly with the 200-day tidbit.

Over the 200-day (call it $250) and Nvidia seems much healthier for the bulls. Should the broader markets come under pressure and if Nvidia stock takes out the recent lows near $235, the $210 to $220 range would be in play.

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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.