Nvidia Stock Outlook as Marvell Eyes Lumentum and Google Earnings Fall Short

Nvidia stock remained under pressure after Alphabet reported disappointing earnings and Marvell reportedly entered acquisition talks with Lumentum. NVDA closed at $215.38 on Oct. 28, down 11.5% from its October peak.

The developments raised questions about AI infrastructure spending and semiconductor valuations. Meanwhile, Intel’s upcoming earnings could influence expectations for Nvidia’s technology investments.

Alphabet Published Weak Results, Raising AI Jitters

Nvidia stock retreated as investors remained concerned about the AI industry. These concerns escalated overnight after Alphabet published its numbers, which fell short of expectations.

Alphabet said that its revenue rose to $111.2 billion in the September quarter as its advertising and search businesses disappointed.

The company’s AI business also continued to face challenges, raising concerns about the industry’s return on investment (ROI).

These numbers are important because Google is often seen as a bellwether for the AI industry. It owns DeepSeek, one of the top AI labs in the world, and TPU, some of the fastest growing chips in the sector. Alphabet is also one of Nvidia’s biggest customers.

These results came a few days after Microsoft said that it was offering buyouts to 60,000 employees, in one of the biggest layoffs. In its earnings report, the company said that it was seeing a slowdown in its data center rollout in the United States.

Amazon, another top Nvidia client, is expected to publish its financial results later today, providing hints on its business trends.

Marvell Technology in Talks to Buy Lumentum

The other important report that may impact Nvidia is that two of its portfolio companies are planning a merger. Marvell Technology, a company that partners with the likes of Amazon and Google in building their chips.

The company is considering buying Lumentum, a top company in the optics business. If the deal goes on, it will be one of the biggest ones in the AI era as Lumentum is worth over $88 billion. Marvell would need to spend about $100 billion to execute the transaction.

A deal would be important for Nvidia because it is one of the two companies’ top investors. Jensen Huang, the CEO, has claimed that Marvell will one day become a $1 trillion company because of the rising demand for its products. If the deal is confirmed, chances are that the Marvell stock will fall, while Lumentum’s will surge.

Another important catalyst for Nvidia stock will be the upcoming Intel earnings, which will come out after the market closes. Nvidia is the third-biggest Intel shareaholders with a stake valued at over $20 billion. Only BlackRock, Vanguard, and State Street have a bigger stake in Intel.

Intel’s earnings will provide more hints on the AI industry. A strong report will provide clues about whether the AI industry is thriving.

Nvidia Stock Price Technical Analysis

The daily chart shows that the NVDA stock has been in a strong sell-off in the past few days. It has dropped from a high of $243 to the current $215.

The stock remains above the ascending trendline that connects the lowest swings since March this year. It has also remained above the 100-day Exponential Moving Average (EMA), a sign that the upward trend is still intact.

However, the stock has also formed a bearish pennant pattern, which often leads to a continuation. Therefore, there is a risk that the stock will continue falling, potentially to the 200-day moving average of $205. A move above the resistance level of $205 will invalidate the bearish outlook.

This article is for informational purposes only and does not constitute financial advice. Equity investments involve volatility and potential losses. Readers should conduct independent research before investing.