Nvidia Stock Forecast After Reaching a $35B Deal With Anthropic

Nvidia stock has struggled in the past few days, moving from a high of $230 after its earnings report last week. However, there is a possibility that the stock is on the verge of a significant bullish breakout. That occurred after reaching a deal with Anthropic.

Nvidia Reaches a $35 Billion Deal With Anthropic

Nvidia’s business is firing on all cylinders this year, as evidenced by last week’s earnings report. Now, the company has reached a major deal with Anthropic, in which it already holds a stake.

According to the arrangement, Nvidia will supply chips to a large data center owned by Anthropic in Texas. This is a major development, as Anthropic has largely used chips from Google and Amazon for its data centers.

Nvidia has a large stake in Anthropic, raising concerns about its circular investing. It’s a situation where companies in its portfolio are buying its chips. In addition to Anthropic, Nvidia has reached deals with data center companies like CoreWeave, Nebius, IREN, and OpenAI.

In another statement this week, Nvidia announced that it had invested in MediaTek, a company in the chip industry. It invested $3.5 billion in the company. They also announced plans to collaborate on areas like AI infrastructure, legal AI computing, and the automotive industry.

In AI infrastructure, the two companies will work with NVIDIA’s NVLink Fusion ecosystem to help customers build custom AI infrastructure designed to integrate with rack-scale systems.

In addition to the ongoing investments, Nvidia has made other strategies to keep data center spending intact.

For example, it has launched a $500 billion partnership with major companies in the financial services industry. The names include Goldman Sachs, Brookfield, and BlackRock, as well as finance companies in the AI industry.

Nvidia’s Growth is Accelerating

The new Anthropic deal means that Nvidia’s growth will likely continue growing in the coming years. Its results, released last week, showed that its metrics improved across the board.

For example, Nvidia’s revenue jumped by 106% in the second quarter to over $96 billion, with its data center segment alone making over $89 billion. Moreover, the company’s guidance is for its annual revenue to jump by over 77% next year. That’s much higher than the 40% that analysts were expecting.

Nvidia has other catalysts that may benefit its business. It has launched NVIDIA Vera, the first CPU for AI agents. This is a big deal since AI agents are expected to keep growing in the coming years.

The company is also working on the Vera Rubin platform. Its racks are already running at companies like CoreWeave, Google, Microsoft, Nebius, and Oracle Cloud.

Looking ahead, the company could benefit from doing more business in China, a crucial market for the artificial intelligence (AI) industry. The company has already started shipping some H200 chips to the country. With Xi Jinping coming to the US, chances are that this will be a topic.

Nvidia has also become a bargain, with the forward price-to-earnings ratio of 23, much lower than the five-year average of 42.

Nvidia Stock Price Technical Analysis

The weekly chart shows that NVDA stock has been in a strong upward trend for an extended period. It is now hovering around its all-time high of $236.

Nvidia stock has formed an ascending channel and is inside it. It has jumped above the 50-week and 100-week moving averages, a sign that bulls remain in control for now.

The Relative Strength Index (RSI) has continued rising. Therefore, the path of least resistance is upward, with the next key target to watch being the all-time high of $236. The psychological level of $250 follows.