Key Insights:
- Nvidia stock could surge amid rising demand for its chips in China.
- Some of the companies Nvidia has invested in are considering going public.
- NVDA stock price has formed a bullish flag pattern pointing to more gains.
Nvidia stock price could be primed for a strong bullish breakout once the ongoing consolidation phase ends, as fresh catalysts emerge and analysts remain upbeat. NVDA was trading at the important support at $170, a few points below the year-to-date high of $184.
Nvidia Stock Could Jump Amid High China Demand
One reason the Nvidia share price has struggled in the past few weeks has been the rising concerns about its Chinese business. Officials in the country have been studying H20 chips to establish whether they have a backdoor that the Chinese government may exploit.
China is also dissuading companies from buying H20 chips, which officials believe are not all that good. As a result, the company has stopped shipping the H20 chips there.
The other risk has been that Chinese companies are working on chips that may rival Nvidia’s. The two most prominent names working on this are Alibaba and Cambricon.
On the positive side, a report by Reuters, noted that many Chinese technology companies, including Alibaba and ByteDance, were still interested in Nvidia’s chips.
These companies still want to buy the H20 chips and the B3OA based on the Blackwell architecture. This chip is also expected to cost double what the H20 cost. H20 chips cost between $10,000 and $12,000.
Washington will likely approve the sale of these chips to China because Donald Trump is highly transactional, and he wants more money from Nvidia as part of his arrangement to take a portion of China profits.
A return to China will benefit Nvidia’s stock price due to the increased revenue and profit potential. Most importantly, Nvidia’s revenue is not modelled in its internal and analysts estimates.
Yahoo Finance data shows that analysts’ average Q3 revenue estimate is $54.59 billion, a 55% surge from what it made last year. With Q3 ending, Chinese business will not be included in the report.
Analysts see the fourth-quarter revenue growing by 55% to $61 billion. The final figure will likely be higher than this estimate if it includes China’s business.
Nvidia to Benefit From the IPO Boom
The other potential catalyst for the NVDA stock price is that some private companies it has invested in will go public in the coming years. CoreWeave, an AI infrastructure company that Nvidia invested in, has already gone public and is now valued at over $42 billion.
According to CNBC, Cohesity, another company in which Nvidia has invested, plans to list in 2026, potentially valuing it at least $17 billion. Cohesity is believed to the biggest data protection software provider in the industry with a 20% market share.
Figure AI, a company that provides blockchain-based lending solutions, plans to go public at a $4.1 billion valuation. Nvidia is one of its top investors. The stock has also benefited from the recent $14.3 billion Scale AI investment by Meta Platforms, as it was one of the investors.
Nvidia benefits when companies in its portfolio go public because it enables it to exit some investments.
NVDA Stock Price Technical Analysis
In recent articles, we have highlighted the potential risks facing the NVDA stock price and warned that it may crash to $150. These risks remain.
However, the counterargument is that the stock has already completed mean reversion by falling back to the 50-day moving average.
Also, there are signs that it has formed a bullish flag chart pattern, which is made up of a vertical line and a channel. The stock also remains above the major S/R level of the Murrey Math Lines, too.
Therefore, it will likely stage a strong comeback as these fresh catalysts emerge. This forecast will become confirmed if the stock rises above the upper side of the flag’s channel at $184. A bullish breakout will see it rally to the extreme overshoot point at $225, 33% above the current level.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
