Nvidia Stock (NVDA) gained a substantial 9% increase after the company's quarterly earnings report, surpassing Wall Street's expectations. Strong demand for the company's AI processors contributed to an optimistic revenue forecast for the current quarter. The NVDA stock price is steady near the 800.00 level, which may extend towards the 1000.00 mark soon.
Nvidia Earnings Soared
Nvidia, headquartered in Santa Clara, California, disclosed fiscal fourth-quarter earnings of $22.10 billion, reflecting a substantial surge from the $6.05 billion generated in the prior year's corresponding period. The diluted earnings per share experienced a decrease from 57 cents to $4.93. Both revenue and earnings significantly exceeded analysts' projections.
Strong sales of Nvidia's AI server chips, including the H100—a fourth-generation GPU were the primary driver of revenue growth. The sales of these AI chips are managed by Nvidia's Data Center division, which witnessed an impressive revenue growth of 409% compared to the previous year.
Notwithstanding the substantial surge in sales, the organization disclosed that its earnings were limited due to recent U.S. tariffs on the exportation of AI processors to China. The CEO of Nvidia, Jensen Huang, explained that despite the lengthy process, the company modified its products to comply with the restrictions.
Nvidia Earnings Projection
Nvidia expressed optimism for the future, projecting first-quarter revenue of $24.0 billion, which exceeded the $22.17 billion estimate put forth by the Street. Huang articulated optimism regarding the sustained expansion of the company, attributing it to advantageous circumstances.
Additionally, Nvidia stated that the highly anticipated B100 processor will be released later in the year, despite supply constraints being anticipated due to high demand.
Before early January, when they emerged from a six-month consolidation period, NVDA shares had been on an upward trend. It is recommended that investors closely observe the stock's response to it's all-time high, as a successful breakout could generate additional favorable momentum, whereas a failure could incite profit-taking.
Nvidia Stock (NVDA) Technical Analysis
In the daily chart of Nvidia stock price, the ongoing buying pressure is valid as the dynamic 20-day EMA supports the current price at the 662.66 static level.
The primary outlook for this stock is to seek long opportunities as long as bulls hold momentum above the 680.00 to 660.00 area. A bullish rebound from the dynamic 20-day EMA is possible, opening the room to reach the 850.00 level before heading to the 1000.00 mark.
On the bearish side, a significant downside correction is possible as the current price is at an all-time high. A sufficient profit trading might be indicated after coming below the 640.00 line with a bearish daily close. In that case, the selling pressure might extend towards the 500.00 level in the coming days.
