NVIDIA Stock Price Nears Record High as AI IPOs Loom

Key Insights

• NVIDIA stock price is in the spotlight ahead of the upcoming AI IPOs.
• SpaceX, OpenAI, and Anthropic will launch their IPOs this year.
• Google is raising $80 billion for use in the AI industry.

NVIDIA stock price advanced on Monday and traded near its record high after the company unveiled its first artificial intelligence-focused CPUs for the Windows ecosystem. NVDA rose to $224, matching a previously identified technical target.

The rally came as investor focus shifted toward the next phase of the artificial intelligence boom. Several high-profile AI companies are reportedly preparing public listings, while major technology firms continue increasing spending on data centers and AI infrastructure.

AI IPO Pipeline Could Support NVIDIA Growth

The biggest private companies in the artificial intelligence industry are planning to go public. Elon Musk’s SpaceX will be the first company to launch its IPO this month. It expects to go public at a whopping $1.75 trillion valuation.

OpenAI, in which NVIDIA holds a big stake, also plans to go public this year as it has already filed its papers with the SEC. Anthropic filed its papers on Monday, with analysts expecting it to go public in the coming months.

These IPOs are important for NVIDIA because it has become the biggest supplier of GPUs to companies in the AI industry. For example, it has a long relationship with Musk’s SpaceX, which owns xAI, a company that owns Twitter and Grok. As such, the company will likely use the fundraising to boost its purchases for NVIDIA GPUs.

NVIDIA took part in the last OpenAI fundraising event that valued it at over $850 billion. As such, a surge in valuation after going public will boost NVIDIA’s return on a mark-to-market basis. It will also receive new capital that the company will use to deploy its chips.

Anthropic’s IPO will also uniquely benefit NVIDIA. For a long time, the company has largely avoided using the highly expensive NVIDIA chips. Instead, it has focused on those made by Amazon and Google. Still, there are signs that it is embracing NVIDIA chips because of its partnership with CoreWeave, a company that NVIDIA owns 11% in.

Big Tech Spending Remains the Primary Catalyst

Meanwhile, Google is raising $80 billion to use in AI investments. This is notable as Alphabet is one of the top hyperscalers in the world. While Google has its own TPU chips, it is also a big customer of NVIDIA GPUs. As such, there is a likelihood that the company will use some of these funds on NVIDIA.

All this is happening at a time when hyperscalers are boosting their data center spending this year. The top big names plan to spend over $750 billion this year, much higher than the $675 billion they spent last year.

These numbers explain why NVIDIA’s business continues to fire on all cylinders. The company made over $81 billion in revenue in the first quarter of the year, up by 85% from the same period last year. It also guided towards achieving $91 billion in revenue this quarter, a figure that analysts believe is conservative.

For one, the guidance did not include its Chinese business. It also did not include the new CPU business that it unveiled in Taiwan on Monday. NVIDIA believes that this is a business that can be valued at over $200 billion.

NVIDIA Stock Price Forecast: Technical Analysis

The daily chart reveals that the NVDA stock price has rebounded as we predicted here. This rebound happened after the stock retested the important support level at $212, its highest point in October last year. That means it formed a break-and-retest pattern, a common continuation sign in technical analysis.

NVIDIA stock price has remained above all moving averages, a sign that bulls remain in control. Therefore, the most likely scenario is where it continues rising, with the initial target to watch being at $236. A surge above that level will point to more gains towards $250 and $300.

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