Nvidia Stock Price Forecast After the Strong Micron Earnings

Key Insights

• Nvidia stock retreated to a multi-month low after the latest Micron earnings.
• Micron said that its revenue jumped by 346% from the same period last year.
• Nvidia has some of the best fundamentals, pointing to a rebound in the near term.

Nvidia stock price retreated by 3% on Thursday, reaching its lowest level since April 14, even after Micron (MU) published strong results. It dropped to $201, down by 18% from its highest point this year. This article explores what to expect in the coming weeks.

Nvidia Stock Falls After the Strong Micron Earnings

Micron, the third biggest name in the memory industry globally, published strong financial results on Wednesday, signaling that the artificial intelligence boom is still going strong.

The company said that its revenue jumped by 74% in the third quarter from what it made in Q2. Its revenue was up by 346% from the same period last year, while its gross margin rose to 85%. It has now dethroned Nvidia as the tech company with the highest profit margins. Its net income soared to over $28.86 billion.

These numbers are important for Nvidia for two main reasons. First, Nvidia is one of Micron’s biggest clients and its strong numbers are a sign that the former made substantial orders.

Second, the results mean that the AI supercycle is still going strong, with many hyperscalers accelerating their spending. The biggest of these hyperscalers is spending over $750 billion in capital expenditures this year.

Nvidia Has Some of The Best Fundamentals

While Nvidia faces some major challenges like the rising competition, there are signs that the company has some of the best fundamentals in corporate America.

Its core GPU business is firing on all cylinders despite the emerging competition from companies like AMD, Intel, and Google.

At the same time, the company has some important catalysts that may drive its performance in the near term. One of the key catalysts is that it may start to gain market share in China, a crucial country in the AI industry. The company has already received orders from ten of the biggest technology firms in the country, like Alibaba, Tencent, Baidu, and ByteDance.

At the same time, data shows that it has become one of the biggest names in the data center Ethernet switch business. It made $2.6 billion in the last quarter, giving it a market share of 21.5%, up from 4% in the same period in 2024. This means that the company will keep gaining share over time.

Most importantly, Nvidia has entered the fast-growing CPU industry by launching Vera chips. This industry is booming because of the concept of AI agents, which don’t require the most advanced GPUs. As a result, it will start taking market share from companies like AMD and Intel.

All this is happening at a time when the company is repurchasing billions of shares. In the last earnings report, the management boosted the share buyback program by $50 billion. It has bought millions of shares in the past few years, a move that has continued boosting its earnings per share.

Also, it is being valued as a value company despite the fact it is one of the biggest growth companies in the US. Its annual revenue is expected to be 80% this year, followed by 40% in the next year.

NVDA Stock Price Technical Analysis

The daily chart shows that the NVDA stock price has been under pressure in the past two months. It has formed a giant descending channel pattern and is nearing the lower side.

This channel formed after the stock surged from a low of $164.38 in March to a high of $236 on May 14. As such, that is a sign that the stock has been forming a bullish flag pattern, a common bullish reversal sign in technical analysis.

Therefore, the stock will likely bounce back in the coming days. If this happens, the initial target to watch will be at $236, its highest point on record.

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