{"id":31312,"date":"2026-10-07T22:06:37","date_gmt":"2026-10-07T22:06:37","guid":{"rendered":"https:\/\/moneyinsiderzone.com\/?p=31312"},"modified":"2026-10-07T22:06:37","modified_gmt":"2026-10-07T22:06:37","slug":"nvidia-stock-is-slowly-forming-a-risky-pattern-is-a-reversal-coming","status":"publish","type":"post","link":"https:\/\/moneyinsiderzone.com\/?p=31312","title":{"rendered":"Nvidia stock is slowly forming a risky pattern: is a reversal coming?"},"content":{"rendered":"
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Nvidia stock has stayed in an upward trend this year and is now hovering near its all-time high as several catalysts emerge. It peaked at $243 on Tuesday before paring back some of those gains to trade at $239. Still, a crucial bearish chart pattern is forming ahead of the third-quarter earnings report.<\/p>\n

Nvidia stock to benefit from the rising demand and share buyback<\/h2>\n

There are signs that Nvidia\u2019s demand is soaring. As we wrote earlier, Elon Musk\u2019s SpaceX is in the process of raising $40 billion from Apollo Global to buy its chips<\/a>. <\/p>\n

Other companies in the tech industry are also raising funds to do this. In Australia, Firmus is about to raise over $5 billion in an initial public offering. It plans to use some of these funds to buy Nvidia chips. <\/p>\n

Nscale, a British neocloud company, is also in the process of raising $3 billion at a $35 billion valuation. Lambda, a company that Nvidia backs, is also raising funds to scale its data centers. <\/p>\n

Most importantly, top hyperscalers plan to continue spending this year. In a recent note, Gartner predicted<\/a> that AI spending will jump by 50% this year to $2.7 trillion. All this will benefit Nvidia, the biggest GPU provider in the world.<\/p>\n

This trend suggests that Nvidia’s revenue growth will likely exceed expectations. Analysts had forecast about 40% revenue growth for 2027, but when the company released its numbers, it guided for growth of about 70%. Nvidia has also historically set conservative guidance, which means its actual results often come in above its own forecasts.<\/p>\n

Nvidia\u2019s strong growth explains why the management has accelerated the share buyback plan. It announced a $150 billion buyback<\/a> last week on top of the continuing $80 billion that it is executing. Data shows that its outstanding shares have dropped to 24.15 billion, down from a 2025 high of 25 billion.<\/p>\n

The repurchase is also a sign that the management believes that the company is highly undervalued. It has a forward price-to-earnings ratio of 25, which is much lower than the five-year average of 42. <\/p>\n

Still, the risk is that some analysts believe that the AI bubble is about to burst. In a statement this week, billionaire Ray Dalio warned that the burst will be caused by the rising US bond yields. <\/p>\n

Analysts remains optimistic about Nvidia shares. BNP Paribas analysts reiterated their outperform rating and a target of $345. Cantor Fitzgerald analysts have a target of $350, while Rosenblatt hiked to $390.<\/p>\n

NVDA stock price technical analysis<\/h2>\n
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NVDA stock chart | Source: TradingView<\/em><\/p>\n

The daily chart shows that Nvidia shares have been in an upward trend this month. It jumped to a high of $243 as the rally gained steam. <\/p>\n

The stock has already jumped above the crucial resistance level of $235, its highest swing in May this year. Moving above that level confirmed a bullish breakout. It has remained above the 50-day moving average and the Supertrend indicator.<\/p>\n

The risk, however, is that the stock has formed a rising wedge pattern, which is made up of two rising and converging trendlines. This pattern often leads to a bearish breakout, especially when the two lines are nearing their confluence. <\/p>\n

The post Nvidia stock is slowly forming a risky pattern: is a reversal coming?<\/a> appeared first on Invezz<\/a><\/p>\n

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Nvidia stock has stayed in an upward trend this year and is now hovering near its all-time high as several catalysts emerge. It peaked at $243 on Tuesday before paring back some of those gains to trade at $239. Still, a crucial bearish chart pattern is forming ahead of the third-quarter earnings report. Nvidia stock […]<\/p>\n","protected":false},"author":1,"featured_media":31313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[],"class_list":["post-31312","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech-news"],"_links":{"self":[{"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=\/wp\/v2\/posts\/31312","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31312"}],"version-history":[{"count":0,"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=\/wp\/v2\/posts\/31312\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=\/wp\/v2\/media\/31313"}],"wp:attachment":[{"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneyinsiderzone.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}