Nvidia Stock Price Prediction: Maia 300 Puts $212 in Focus

Nvidia stock price prediction weakened on Tuesday, Oct. 13, as semiconductor shares extended their recent retreat. Microsoft’s new Maia 300 announcement and Broadcom executive comments added pressure to investor sentiment.

Nvidia (NVDA) traded near $224.45 in premarket activity, according to Barron’s. The stock had closed Monday at $226.32, after reaching a recent high of $243.37.

Microsoft’s announcement raised questions about future demand for Nvidia’s graphics processing units. However, the company plans to deploy Maia 300 in 2027 rather than immediately replacing existing hardware.

Nvidia Stock Drops After Microsoft Milestone

Microsoft has been one of Nvidia’s biggest clients. While the exact numbers are not known, some estimates suggest it accounts for about 20% of Nvidia’s total sales.

Nvidia has benefited from this relationship as Microsoft has continued intensifying its data center rollout. It has been predicted that it will spend over $200 billion in capital expenditures this year.

Now, however, there are signs that Microsoft is seeking to wean itself off Nvidia. It launched Azure Maia 300, a new chip it hopes will help reduce its reliance on Nvidia and AMD. The new chip joins the Maia 100 and Maia 200, which will be part of the multigigawatt deployments starting from next year.

In a statement, the company said that the chips will be the primary AI inference system for Microsoft’s products and services. Most notably, it noted that the chip provides about 40% more tokens per megawatt than other GPUs, a clear swipe at Nvidia.

As such, if Microsoft reduces its use of Nvidia’s chips, its revenue growth and margins are likely to slow.

This development is important because other large Nvidia clients are doing the same. OpenAI has launched its Jalapeno chip, which is made in collaboration with Broadcom. The company has said its chip is also more powerful than Nvidia’s chips.

Google, another big client, has continued to push its TPU and has recently partnered with companies like Marvell Technologies and Broadcom to boost production.

Nvidia is Doing Well Despite the Rising Competition

The most recent results showed that Nvidia’s business is thriving despite the rising competition in the industry. Its revenue soared to $104 billion, continuing a growth trajectory that began with the AI boom.

The company estimates that its annual revenue will jump by 70% next year, continuing this trend. This surge is due to companies like OpenAI, Microsoft, and Google continuing to spend on Nvidia, albeit at a slower pace.

Additionally, the company has crafted a strategy to continue growing. For example, it has partnered with banks and private equity firms like Goldman Sachs, Brookfield, and Apollo Global to provide financing worth over $500 billion. Just recently, SpaceX announced that it will raise $40 billion to buy these chips.

The company is also entering new markets. It recently launched its new chips, which Microsoft says outperform those from Intel and AMD. This business may do well over time as AI agents grow.

Nvidia also expects to grow in China, where some companies like ByteDance and Tencent are boosting their performance.

Nvidia Share Price Technical Analysis

The daily chart shows that the NVDA stock has been in a steep sell-off in the past few days. It has moved from a high of $243 to $223. This retreat happened after the stock formed a rising wedge pattern, which is made up of two ascending and converging trendlines.

At the same time, the stock has dropped below the Major S/R pivot point of the Murrey Math Lines tool. Therefore, the stock will likely continue falling, potentially to the Strong, Pivot, Reverse level of the Murrey Math Lines at $212. A move above the $240 resistance level will invalidate the bearish outlook.

This article is for informational purposes only and does not constitute financial or investment advice.