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Key Insights:
- Nvidia stock price may jump above the resistance at $200 soon.
- TSMC reported strong August sales, pointing to potential high demand for Nvidia.
- Oracle also published strong financial results, indicating that demand is rising.
Nvidia stock price has moved horizontally in the past few weeks as concerns about the AI growth continued. Significant developments from Oracle, TSMC, and Nebius fuel optimism in the market. These catalysts could push the asset’s price beyond $200 soon.
TSMC, and Nebius News to Boost Nvidia Stock Price
There has been some notable AI news this week. This may propel the NVDA stock price higher in the coming weeks.
The first one came from Taiwan Semiconductor, the biggest chip fabricator in the world. In a statement, the firm said that demand for its products continued to rise in August.
Sales jumped by a whopping 34%, higher than the 25% that analysts were expecting. It brought in over $11.1 Billion in revenue, a sign of robust demand from chip companies.
TSMC does not segregate its revenues by customers. However, Nvidia is one of its biggest customers. This means that there is a probability that it accounted for most of this growth.
The other major AI news came from Microsoft. It entered into a $17 Billion deal with Nebius. It is a company that offers data center solutions to companies in the AI industry.
The multi-year deal means it has received a client for its upcoming data center in New Jersey. This also means that it will accelerate the purchase of Nvidia chips to meet Microsoft’s expected workload.
The contract is a sign that Microsoft needs more demand than expected. Microsoft, Nvidia’s biggest customer, is spending over $30 Billion this quarter on data centers.
Oracle Business is Growing, a Sign of Robust AI Demand
Meanwhile, Oracle’s stock price surged by over 30% in the premarket after the company published strong results. The numbers showed that the closely-watched RPO jumped by 359% in the second quarter to $455 Billion. It is one of the biggest in the United States.
While Oracle is known for its databases, the AI theme has propelled it to the current heights. The company has a major deal with OpenAI to provide advanced cloud computing solutions for its business.
It has also become a major partner of some other companies. It is also a core member of Stargate, a project that includes companies like Softbank and OpenAI.
Other companies in the AI infrastructure industry are booming. CoreWeave, a company similar to Nebius, plans to spend over $25 billion in capital expenditure this year. Similarly, other companies like IREN are also doing the same.
All this news means that Nvidia stock will continue growing, albeit slower than it did in the past. Analysts expect Nvidia’s third-quarter revenue to rise by 55% in the current quarter to $54 Billion.
It will then grow by another 55% in the fourth, bringing its annual revenue to $206 Billion. This guidance is notable because they don’t include the potential sales to China.
Nvidia Share Price forecast
The average NVDA stock price forecast among analysts is $210, representing a 23% upside from the current level. Also, valuation calculations show that NVDA stock is cheap.
Technical analysis shows that the stock is highly bullish and may soon hit that outlook. It remains above the 50-day and 100-day Exponential Moving Averages (EMA).
Most notably, the ongoing horizontal movement of the stock is part of the formation of the bullish flag pattern. This often leads to more gains over time.
The stock remains above the Major S&R Pivot Point of the Murrey Math Lines at $150. Therefore, it will likely have a strong bullish breakout, potentially to the ultimate resistance level at $200.
A cross above that level will point to more gains, potentially to the extreme overshoot level of $225
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
