Key Insights

Nvidia stock has wavered over the past few days and has yet to reach its all-time high.

The company has signed a major deal with Anthropic, the creator of Claude.

It also announced a $3.5 billion investment in MediaTek.

Nvidia stock has struggled in recent sessions, retreating from a high of $230 reached after its earnings report last week. Still, there is a possibility that the stock is on the verge of a significant bullish breakout following the deal reached with Anthropic.

Nvidia Reaches a $35 Billion Deal With Anthropic

Nvidia's business is firing on all cylinders this year, as evidenced by last week's earnings report. The company has now reached a major deal with Anthropic, a company in which it already holds a stake.

Under the arrangement, Nvidia will supply chips to a large data center owned by Anthropic in Texas. This is a notable development, as Anthropic has largely relied on chips from Google and Amazon for its data centers. Winning supply deals with AI labs that previously depended on cloud providers' in-house or partner silicon marks a shift in how leading AI developers source compute, and it expands Nvidia's direct customer base among frontier model builders.

Nvidia holds a large stake in Anthropic, which has raised concerns about circular investing — a situation in which companies in its portfolio buy its chips. Under this model, capital Nvidia deploys into startups effectively returns as chip revenue, a structure that has drawn scrutiny from analysts who note it can make headline deal values harder to interpret as independent demand signals. Beyond Anthropic, Nvidia has reached deals with data center companies including CoreWeave, Nebius, IREN, and OpenAI.

In another statement this week, Nvidia announced a $3.5 billion investment in MediaTek, a company in the chip industry. MediaTek, best known as one of the world's largest suppliers of smartphone and edge-device chips, has worked with Nvidia since 2023 on automotive cockpit technology, and the new deepening of the relationship extends Nvidia's reach beyond hyperscale data centers into custom and edge silicon. The two companies also announced plans to collaborate on areas such as AI infrastructure, legal AI computing, and the automotive industry.

In AI infrastructure, the companies will work with NVIDIA's NVLink Fusion ecosystem to help customers build custom AI infrastructure designed to integrate with rack-scale systems. NVLink Fusion, opened to third-party silicon in 2024, allows partners to attach their own CPUs or accelerators to Nvidia's interconnect — a way for Nvidia to monetize AI buildouts even when customers use non-Nvidia components.

Alongside its ongoing investments, Nvidia has pursued other strategies to keep data center spending intact. For example, it has launched a $500 billion partnership with major companies in the financial services industry, including Goldman Sachs, Brookfield, and BlackRock, as well as finance companies in the AI industry. These financing arrangements are designed to help cash-constrained data center operators fund GPU purchases, addressing one of the main constraints on AI infrastructure buildout: access to capital.

Nvidia's Growth Is Accelerating

The new Anthropic deal suggests Nvidia's growth will likely continue in the coming years. Its results, released last week, showed improvement across the board.

Nvidia's revenue jumped 106% in the second quarter to over $96 billion, with the data center segment alone contributing more than $89 billion. That means the data center business accounts for the overwhelming majority of Nvidia's revenue, which is why shifts in AI lab and cloud provider spending patterns move the stock so sharply. The company's guidance calls for annual revenue to rise by over 77% next year — well above the 40% analysts were expecting.

Nvidia has other potential catalysts. It has launched NVIDIA Vera, the first CPU for AI agents, a notable development as AI agents are expected to keep growing in the coming years. The company is also working on the Vera Rubin platform, whose racks are already running at companies including CoreWeave, Google, Microsoft, Nebius, and Oracle Cloud.

Looking ahead, the company could benefit from doing more business in China, a crucial market for the artificial intelligence (AI) industry. Nvidia has already started shipping some H200 chips to the country. With Xi Jinping coming to the US, chances are that this will be a topic of discussion.

Nvidia has also become a bargain by one valuation measure, with a forward price-to-earnings ratio of 23, much lower than its five-year average of 42.

Nvidia Stock Price Technical Analysis

The weekly chart shows NVDA stock in a strong upward trend for an extended period. It is now hovering around its all-time high of $236.

Nvidia stock has formed an ascending channel and is trading inside it. It has risen above the 50-week and 100-week moving averages, a sign that bulls remain in control for now.

The Relative Strength Index (RSI) has continued rising. The path of least resistance is therefore upward, with the next key target to watch being the all-time high of $236, followed by the psychological level of $250.