Top Catalysts for NVIDIA Stock Price in April

Key Insights

• NVIDIA stock price is down by 6.50% this year.
• The company will react to key corporate earnings in April.
• It will also react to any new developments on its China business.

The first quarter was quite disappointing for NVIDIA’s stock price, which dropped by 6.50% despite major announcements, including its goal to reach $1 trillion in the next few years. This article examines the top catalysts that will drive NVDA stock in April.

NVIDIA Stock Price to React to Big Tech Earnings

While NVIDIA will not publish its first-quarter results this month, several influential companies will do so. These companies include their suppliers and their biggest customers

On the supply side, Taiwan Semiconductor, the world’s largest chip manufacturer, will release its results on April 16th.

These numbers will provide more information about its business, especially as the ongoing Iran war has led to a severe helium shortage across Asia.

As such, management will discuss how the helium shortage is impacting its business, which may also affect companies like NVIDIA and AMD.

TSMC’s results typically signal what to expect when NVIDIA releases its numbers, as it is one of its biggest customers.

ASML, the Dutch company that supplies lithography machines, will release its numbers on April 15th.

NVIDIA generates almost half of its revenue from a handful of major technology companies, including Microsoft, Google, Amazon, and Meta Platforms. These companies plan to spend over $650 billion in capital expenditures this year.

They will all release their earnings this month and shed color on their capital expenditure plans. These results are particularly important because they come at a time when their stocks have pulled back as investors question their investments and capital returns.

As a result, some of these names might see a boost if they announce plans to scale back their investments. Such a move would be bearish for the NVDA stock price, while plans to keep spending would push it much higher.

NVIDIA Investments in Private and Public Companies

NVDA stock price has wavered this year as investors watch its investments in other companies, which has raised concerns about circular investments. This is a situation in which NVIDIA invests in a company that, in turn, buys its products, boosting its sales and stock price.

Data shows that NVIDIA has invested at least $18 billion in public companies over the last 6 months, with its most recent investment being in Marvell Technologies. It has invested in CoreWeave, Nebius, Lumentum, Synopsys, and Nokia.

The company also invested in many private companies, with the most important one being OpenAI, the creator of ChatGPT. It invested a whopping $30 billion in the company. Also, it has a large stake in Anthropic, OpenAI’s biggest rival. Therefore, the NVDA stock price will likely react to the investments it will make this month.

China Progress Ahead of Donald Trump’s Visit

NVIDIA’s stock price will also react to any new developments in its Chinese business, which has been in limbo in the past few months.

While China has approved the sale of the H200 chips in the country, the Trump administration has stalled the process in reviews. Some legislators have pushed back against allowing Chinese companies to buy the chips.

Therefore, the stock will likely react to any progress on this issue. The most likely scenario, however, is where the final deal is made when Donald Trump travels to Beijing to meet up with Xi Jinping in May.

NVDA Stock Price Technicals to Determine Its Performance

Technicals will also determine whether the NVDA stock price will rebound or crash this month. The daily chart shows that it has remained below the 50-day moving average and the Supertrend indicator, a sign that bears have prevailed.

Also, the stock has moved below the 23.6% Fibonacci Retracement level at $183. It also formed a giant head-and-shoulders pattern and is now hovering near the neckline.

NVDA stock price chart | Source: TradingView

Therefore, the stock will likely continue falling in April, potentially to the 50% Fibonacci Retracement level at $150, which is about 15% below the current level.

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