Top 4 Catalysts for NVIDIA Stock Price This Week

Key Insights

• NVIDIA stock price has moved sideways in the past few months.
• The company will react to the earnings of its top clients.
• It will also react to the upcoming Federal Reserve interest rate decision on Wednesday.

NVIDIA stock price rose by 1.5% on Friday as sentiment in the financial market improved. It ended the week at $187, up modestly from the weekly low of $177. This article explores some of the top catalysts that will affect the NVDA share price this week.

The main catalyst for NVIDIA’s stock price will be earnings from its top customers, which will be released on Wednesday and Thursday. Historically, these earnings have been important for the company as they provide more color on what to expect when it publishes its results.

Microsoft, a company that is believed to be NVIDIA’s biggest client, will release its numbers on Wednesday. These numbers come at a time when its stock has entered a correction, down 15% from its November high, as investors doubt the revenue and profitability growth of its artificial intelligence tools like Copilot.

A sign that the company is committed to the ongoing data center spending will be highly bullish for the NVDA stock price.

Meta Platforms, another company that has been spending heavily on AI, will also publish its financial results, with analysts expecting its earnings growth to come in at $8.20, up by 21.5% YoY.

The other minor AI companies that will publish their numbers on Wednesday are ServiceNow, Lam Research, and IBM.

Apple will then release its numbers on Thursday, while other top NVIDIA customers, such as Amazon and Google, will release theirs next week.

These numbers will come weeks ahead of NVIDIA’s results, which will come out in the final week of February this year.

Another potential catalyst for NVIDIA’s stock price is its venture business, which is doing well. For example, Synthesia, a company it has invested in, raised $200 million in funding, driving its valuation to over $4 billion. Some of the participants in this fundraising were companies like Google, Accel, and New Enterprise Associates.

Synthesia is a company that builds video generation tools for enterprises to be used for internal and external communications. It hopes to use the new funds to scale its businesses and get to more customers.

NVIDIA has used its windfall to invest in hundreds of AI startups. Its most notable investment was in OpenAI, a company whose valuation has jumped to over $800 billion. It also invested $5 billion in Intel, an embattled semiconductor company.

The other main catalyst for the NVIDIA share price is the ongoing trip by Jensen Huang, its Chief Executive Officer (CEO), to China, a potentially big market.

Huang ‘s trip comes a few days after Chinese authorities told Alibaba, Tencent, and ByteDance to prepare to make orders for NVIDIA’s H200 chips. China may also give a go-ahead to more companies to buy these chips.

Estimates indicate that NVIDIA has received over 2 million orders for the H200 chips, while its inventory is about 700,000. Assuming no discounts, these chips are now valued at over $54 billion, a figure that will continue growing.

The NVDA stock price will also react to the upcoming Federal Reserve interest rate decision, which will come out on Wednesday this week. A dovish tone will lead to more demand for technology companies like Nvidia.

The daily timeframe chart shows that the NVIDIA stock price has moved sideways in the past few months. A closer look shows that it has formed a head-and-shoulders pattern, a popular bearish reversal sign.

It has also moved below the Strong, Pivot, and Reverse level of the Murrey Math Lines tool and the 50-day Exponential Moving Average.

Therefore, the most likely scenario is where the stock retreats and hits the key support level at $170. A move below that level will point to more downside, potentially to the psychological level at $150. A move above the resistance level at $200 will invalidate the bearish outlook.

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