As you can see on the NVDA daily chart, the range lows on April 27 and May 12 connect at a downward angle. What would make me think NVDA stock is revved up for a reversal now? The S&P 500 is yet to touch the all holy 3,400 level that many view as the ultimate bottom in this mayhem.
Yes, I know, the market has been dropping for weeks. Nvidia Stock Forecast: Is a rally on the way? Besides Snap, Nvidia joins a host of other tech firms who are bracing for a recession. In step with Snap, the social media platform that saw its star collapse after releasing a pessimistic vision for business prospects the rest of the year, Nvidia announced this past weekend that it had decided to slow down its rate of hiring. Of course, the Federal Reserve will release minutes on Wednesday that could affect market sentiment positively or negatively, so it is still possible that the largescale shift in investor williness to pay high multiples for growth stocks could outweigh even positive results and guidance. Citi analyst Atif Malik wrote to clients, "We hear data center still remains an area of relative strength within semis, as consumer semis PCs and smartphone-related demand continues to come down.” If true, this is quite positive since data centers account for around 40% of Nvidia's sales. With a lack of supply, chip makers overall should find it easy to raise prices as many of the top designers offer products without simple substitutes. Semiconductors are in hot demand, and 2021's chip shortage is yet to be sated. Nvidia Stock News: Data center demand is key to earnings beatĪlthough anything could happen, our money is on another earnings beat.
Wall Street is expecting adjusted earnings per share (EPS) of $1.29 on revenue of $8.09 billion. Ready to make it 14, the market seems uncertain how much if at all inflation and recent retail jitters could affect Nvidia's results.Īlso read: With China in danger of recession, all eyes on Thursday's BABA earnings for clues The semiconductor behemoth known for its GPUs has beaten earnings expectations for 13 consecutive quarters. Nvidia (NVDA) stock is trading up 2.1% at $165 on Wednesday ahead of its quarterly earnings call after the close.
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