Top News that May Push Nvidia Stock Past $200 this Week

The Nvidia stock price jumped by over 2% in the pre-market session and crossed $190 ahead of key events that may impact its performance. NVDA has now jumped by 120% from its lowest level this year, and its future performance may depend on this week’s events.

Nvidia Stock Price to Depend on Big Tech Earnings

One of the most important catalysts for the Nvidia stock price will be the upcoming earnings by top companies like Amazon, Microsoft, Google, and Meta Platforms.

These results are important because these companies are Nvidia’s biggest clients, accounting for nearly 50% of its earnings. They are also the biggest operators of data centers in the United States and other countries.

NVDA stock price has historically jumped after these companies published their earnings in the past few years as they have committed to boost their AI investments. In the last earnings season, the companies committed to increase their AI spending this year to over $400 billion, with Meta Platforms committing over $300 billion by 2028.

However, these companies are now under intense pressure from investors to showcase their AI earnings growth after all this spending. Therefore, the Nvidia stock price will crash if one of these companies lowers the guidance on AI spending and vice versa.

Tech companies that have released their earnings so far have pointed to robust spending. The most notable of these were companies like TSMC and ASML, which are involved in the back-end of the semiconductor industry. Intel, which Nvidia recently invested in, has also published strong results.

China and US Trade Truce

The other important Nvidia news to watch will be the upcoming meeting between Donald Trump and Xi Jinping at the APEC Summit in South Korea.

This will be the most important meeting of the week due to its impact on the two largest economies globally.

There are signs that the meeting will have a positive outcome. In separate statements, Chinese and American officials who were negotiating in Malaysia hinted that they had made notable progress.

Some of the touted deals are on China’s purchases of US soybeans, which will mark a political victory for Donald Trump.

However, the mentioned deal did not include Nvidia, which believes that China is its biggest market. In recent statements, China has asked its technology companies to refrain from purchasing Nvidia chips as it seeks to bolster its local industry.

Therefore, a potential mention of Nvidia in Trump’s and Jinping’s would be bullish for the stock. Nvidia has pushed the two sides to reach such a deal, arguing that the US was losing a significant market.

Federal Reserve Interest Rate Decision

The other notable news that could move the Nvidia stock price is Wednesday’s Federal Reserve interest rate decision, which is expected to be announced on Wednesday this week.

Polymarket data shows that traders have a 98% chance that the Federal Reserve will cut interest rates by 0.25% in the coming meeting to between 3.75% and 4%.

The possibility of these cuts increased after the Bureau of Labor Statistics (BLS) released its latest inflation report on Friday. The report showed that the headline Consumer Price Index rose slightly to 3.0% in September from 2.9% in August. Core inflation dropped from 3.1% to 3.0%.

A Federal Reserve interest rate cut would likely benefit Nvidia’s stock price by boosting demand for riskier assets, particularly those in the technology sector.

NVDA Stock Price Technical Analysis

The daily timeframe chart indicates that the NVDA stock price has formed an ascending channel over the past few months and is approaching its upper boundary.

It has remained above the 50-day and 100-day Exponential Moving Averages (EMA) and Supertrend indicator. Its oscillators, such as the Relative Strength Index and the MACD, have also pointed upward.

Therefore, the stock price is likely to continue rising, with the next key level to watch being the psychological $200 mark.