NVIDIA Stock Price Forecast as Microsoft, Meta Pledge AI Spending Boom

Key Insights:

• NVIDIA stock price rose to a fresh all-time high on Friday.
• Microsoft and Meta Platforms published strong financial results.
• They also pledged to boost their artificial intelligence spending.

The NVIDIA stock price continued its solid surge this week. It reached a new all-time high amid rising artificial intelligence (AI) tailwinds after the Microsoft and Meta Platforms earnings. NVDA reached a high of $183, up by over 110% from its lowest point in April.

NVIDIA Stock Price Surges Amid Microsoft and Meta AI Spending Surge

NVIDIA, the biggest company in the world, has major tailwinds that could push its stock price much higher in the coming months.

One of its most important tailwinds was the recently announced deal for it to ship its chips to China. It is a country whose AI spending is booming. In its last financial results, the company warned that the China ban would cost it $8 billion.

The other main tailwind is that some of its biggest customers have pledged to accelerate their AI spending. In its earnings results, Microsoft stated that it will spend a whopping $30 billion in the current quarter to build data centers.

That happened as the company’s results showed that revenue of the closely-watched Azure business jumped by 39% in the second quarter amid the ongoing AI spending boom. Strong financial results sent Microsoft stock higher and its market capitalization to over $4 trillion.

Meta Platforms, the parent company of Facebook and Instagram, also said that its AI business was booming. As a result, the company said that it would spend billions of dollars on cloud infrastructure. Its stock jumped by 12% and reached an all-time high, with its market capitalization hitting $1.95 trillion.

Alphabet, another large player in the data center industry, noted that it would boost its annual capital expenditure to over $85 billion. It is likely that other large players in the AI space will also announce huge AI data center spending when they publish their earnings on Thursday.

All these companies have one thing in common: they are all huge NVIDIA customers. As a result, it is likely that NVIDIA will publish strong numbers later in August.

NVIDIA Earnings Growth to Continue

The strong earnings and capital spending by its biggest clients explain why analysts are upbeat about the NVDA stock price. Data compiled by Yahoo Finance show that Wall Street analysts expect that its upcoming financial results to show a revenue for the last quarter could be $45.68 billion, up by 52% from the same period last year.

These numbers are huge considering that its full-year revenue in 2023 was $26.9 billion. It made $60.9 billion in 2024.

Wall Street analysts expect the company’s annual revenue to be $201 billion, up by 54% from last year. Its final results will likely be better than expected, as it has done in the past. The recent estimates by analysts also did not include the recent spending upgrade by its top clients

NVIDIA Share Price Technical Analysis

The weekly chart shows that the NVDA stock price continued its strong uptrend in July. Most recently, it jumped in the last seven consecutive weeks and is hovering at its highest point on record.

NVIDIA recently crossed the important resistance level at $152, its highest swing in November last year. Moving above that level was notable as it invalidated the forming double–top pattern whose neckline was at $86.8.

The stock remains above the 50-week and 100-week moving averages, while the Relative Strength Index (RSI) has moved to the overbought level of 72.

Therefore, the most likely NVIDIA share price outlook is bullish, with the next target to watch being $200. Such a move will bring its market capitalization to over $5 trillion.

The surge to $200 may not be a straight line, and NVIDIA stock may drop and retest the support at $152.7 and then resume the uptrend. It is known as a break-and-retest pattern and is one of the most common continuation signs in technical analysis.