NVIDIA Stock Analysis: Cup & Handle Pattern Emerges After IREN Investment

Key Insights

• NVIDIA stock price has rebounded and is nearing its all-time high.
• The company invested in IREN, a top rival to CoreWeave and Nebius.
• NVDA stock has formed a cup and handle pattern, pointing to more gains.

NVIDIA stock price has bounced back in the past two consecutive days. NVDA stock reached its highest point since April 26 and is nearing the all-time high of $216. This rally will likely continue in the foreseeable future as the company continues making large investments in the tech industry.

NVIDIA Stock Soars As Firm Invests in IREN

NVIDIA stock price has done well this week and is nearing its highest point this year. One reason for the rally is the success of its investments in the technology industry.

The most recent announcement was a $2 billion investment in IREN. It’s a Bitcoin mining company that has expanded rapidly in the AI data center industry. IREN has already secured some major deals, including a $9.7 billion one with Microsoft.

NVIDIA has made large investments in the neocloud industry. It recently invested $2 billion in Nebius, a top company investing in data centers. Nebius has inked major deals with companies like Meta Platforms and Microsoft.

The company also invested $2 billion in CoreWeave, becoming the second-biggest holder of the firm. NVIDIA now holds over $5 billion worth of the company.

These investments mean that the company believes in the neocloud industry, which is seeing strong growth. This growth will likely accelerate after the top hyperscalers boosted their capital expenditure plans to over $725 billion.

NVIDIA’s investments in Nebius and CoreWeave have already become profitable. CoreWeave stock jumped to its highest point since October 2025. At the same time, Nebius is hovering near its all-time high.

Still, the investments have attracted some criticism from some analysts. The main issue is that these analysts believe that NVIDIA is doing circular investments.

In this, it invests $2 billion in IREN, which uses the windfall to accumulate more NVIDIA GPUs. The buying then leads to higher NVIDIA revenues, boosting its stock.

NVIDIA has made many more investments in the past few years as it continued to bet on the AI industry. It is one of the top owners of OpenAI, the parent company of ChatGPT. Also, it invested in companies like Intel, Lumentum, Nokia, Bedrock Robotics, Freeform, Legora, and Oxa.

NVIDIA Growth Momentum is Accelerating

Wall Street analysts expect the company’s business to continue doing well. They are expecting it despite the rising competition from firms like AMD and its clients like Google, Microsoft, and Amazon.

These companies are working on their chips, which they may see them reduce their reliance on NVIDIA. The upcoming earnings are expected to show that its revenue rose by 78% in the first quarter to nearly $80 billion.

For the year, analysts expect the numbers to reveal that its revenue will reach nearly $400 billion this year. Analysts believe that this business will hit $1 trillion in the next few years.

One major driver for this business will be the upcoming Rubin chips. That will be more advanced than Blackwell. The launch may see more demand from hyperscalers and neocloud companies.

Another potential catalyst that may push the NVDA stock price higher is the upcoming Trump visit to China next week. He may reach an agreement to have Chinese companies buy these chips.

NVIDIA Stock has Formed a Cup and Handle Pattern

The daily chart shows that the NVIDIA stock price has rebounded in the past few months. It is now hovering around the all-time high. It has formed a cup-and-handle pattern, which normally leads to more gains. The recent retreat was part of the handle section.

The distance between the upper and lower sides of the cup is $47 (211-164). Adding this amount to its upper side gives the target price of $258. On the other hand, a drop below the lower side of the handle at $195 will invalidate the bullish outlook.

The post NVIDIA Stock Analysis: Cup & Handle Pattern Emerges After IREN Investment appeared first on The Market Periodical.