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Nvidia stock price prediction faces several catalysts as the chipmaker expands its European investments. Chief Executive Officer Jensen Huang announced plans for approximately $2 billion in additional artificial intelligence deals on Oct. 13.
Nvidia stock closed at $228.52 on Tuesday, recovering from an intraday low of $223.06. However, shares remained approximately 6.1% below their Oct. 6 high of $243.37.
Investors now face a series of corporate announcements and earnings reports. Nvidia’s European GTC conference and financial results from major customers could influence the stock’s recovery prospects.
Nvidia Stock to React to Upcoming European Tour
Jensen Huang and other senior executives are visiting Europe next week, where they will meet top officials, including Emmanuel Macron.
The company hinted that it would announce deals worth $2 billion. These investments will be on top of the $8 billion it has made in the past few months. This includes companies like Doctolib, Pigment, and Entalpic.
Nvidia has become one of the biggest investors in the world. It recently invested $30 billion in OpenAI and acquired Hugging Face in a $13 billion deal. The company’s other top investments are in companies like CoreWeave, IREN, Nebius, and Lumentum.
On top of this, Nvidia is said to be in talks to acquire Reflection AI, a company building open-weight models.
Some of these investments have led to accusations of circular financing, a situation in which a company invests in its clients, who then use the funds to buy its products.
Nvidia to Host GTC Event
The other important catalyst for NVDA stock is the upcoming GPU Technology Conference (GTC) that happens on October 20th to 22nd. This is an important event that brings together the biggest players in the technology industry.
A look at its website shows that companies like Amazon, CoreWeave, Dell Technologies, Google, HP Enterprise, Microsoft Azure, and Oracle are among the top sponsors. In total, hundreds of companies will be represented in the event.
The main catalyst during the event is usually the keynote speech by Jensen Huang, who uses it to share what the company is working on.
Nvidia stock will likely rise if the company makes some major announcements such as a new chip.
Top Corporate Earnings
Nvidia is usually one of the last companies to publish its earnings report. Therefore, investors normally look at the earnings of other companies to gain more insights about its business.
The first company to watch will be TSMC, which will publish its financial results on Thursday. Its numbers are important because it is Nvidia’s main chip manufacturer. A strong report will send signals that Nvidia continued buying its products last quarter.
After that, the focus will shift to the upcoming earnings reports from Meta Platforms and Tesla, which will be released on Wednesday next week. Meta is one of the biggest Nvidia clients, while Tesla uses its GPUs for AI training.
Other top clients like Microsoft, Amazon, and Google will also publish their numbers next week. A sign that they plan to continue spending will be bullish for Nvidia.
NVDA Stock Price Technical Analysis
Nvidia shares will also react to its technicals. The daily chart shows that the stock has been in a slow upward trend in the past few months. This uptrend, however, has formed a rising wedge pattern, which is made up of two ascending and converging trendlines.
Nvidia stock has also formed a bearish divergence pattern as the Relative Strength Index (RSI) and the MACD have dropped. Therefore, there is a risk that the stock will continue falling in the near term. If this happens, the next level to watch will be the psychological point of $200. A move above the $235 resistance level will invalidate the bearish outlook.
This article is for informational purposes only and does not constitute financial or investment advice.
