The Investor Channel on $NVDA (Oct 30, 2026)
NVDA fell about 3% this week to around 205, closing at its 200-day average; next week is crucial because it has rarely closed below that average for more than a few days over more than a year, leaving the setup hanging by a thread. Wall Street doubts how long NVDA's partner-funding cycle can continue, though the companies cannot let the music stop.
Jump to any passage
Nvidia is investing $3 billion while Meta plans to raise $95 billion to build its infrastructure.
Moving on to Nvidia, Nvidia shares started the week at around 211. The stock declined like the rest of the "Big Seven" stocks, falling by about 3% this week to end the week at around 205.
This comes as the company continues to invest in its key partners, including Meta this week, where they will invest $3 billion in the social media giant to help them continue funding the development of their AI capabilities.
The company is also considering providing billions of dollars in guarantees to Nscale, a company that is trying to continue expanding its business from a data center perspective.
You have Broadcom, AMD, and now of course Nvidia as well, using a lot of their free cash flow to continue investing in the ecosystem to maintain funding and keep the wheels turning from a data center perspective.
Chips, memory, power, everything has become more expensive, and Nvidia isn't sitting idly by buying back its shares and paying dividends, although it is doing both.
They go back, take that money straight from their pockets, and give it back to their partners, and then those partners, like Meta, go back and buy Nvidia chips again.
How long will this revolving funding continue? How long can this game of musical chairs continue? Well, it seems that Wall Street has its doubts at the moment, but given that these companies have spent billions, hundreds of billions, a trillion dollars or more at this point, they can't let the music stop.
I think Meta held that title among Nvidia and other companies.
Nvidia, wow, look at Nvidia closing right at its 200-day average. Look where the traders put it. In fact, it broke through the 200-day moving average today at a price of 205 and then closed right there.
Next week is crucial. Nvidia has not actually closed below its 200- day moving average for more than a few days over the course of more than a year, which is almost a year and a half, as you have probably spent only 5 days below your 200-day moving average.
Therefore, you had to close the candle completely at that point. We'll see what the traders decide to do.
It has created a small gap in the chart, and as we know, Nvidia will not announce its earnings until about two weeks from now. We'll see what happens, but the situation hangs by a thread from the perspective of the moving average.
What this channel has said about $NVDA
The Investor Channel has 11 calls on this stock; only the adjacent ones are shown.