NVIDIA (NVDA) Earnings Preview: A Big Pop Or Drop?

NVIDIA Corporation (NVDA) will report its second quarter financial results for fiscal year 2024 after the market closes on Wednesday, August 23, 2023. (1)

NVIDIA is the pioneer of GPU-accelerated computing. They specialize in products and platforms for the large, growing markets of gaming, professional visualization, data center, and automotive. The semiconductor’s stock price has been a big beneficiary of the “AI Hype Train”. (2)

Wall Street expects a blowout quarter with earnings per share of $2.06 compared to $0.51 last year for the same period. Revenue is forecast to come in at $11.14 billion compared to $6.76 billion a year ago. (3)

Big expectations could have a big impact on a stock that’s gained nearly $200 since late May. NVDA recently broke its uptrend, which can be a precursor to a pivot lower. The tech company’s shares have rebounded to the plus side of its 50-day moving average and that’s usually a bullish thing.

In all likelihood, next Wednesday’s financial report card could be a catalyst for a major move. If NVIDIA can live up to the AI hype with excellent results and guidance, then there isn’t much in the way of resistance to hold it back from making new highs. Could $500+ be in its future?

There is plenty of opportunity for things to go haywire on the downside. In May, NVDA shares gapped $80 higher, closing on May 24, 2023 at $305.35 and opening on the 25th at $385.23. If Wall Street is looking for too much and NVIDIA disappoints and closes below $380, there is zero support all the way back to $320. Known as closing the cap in technical jargon.

Either way, NVIDIA Corporation (NVDA) might move a long way after earnings.

Trading earnings is risky and only appropriate for the most aggressive investors who can afford to lose money in short timeframes.

Rich Meyers


1 – https://investor.nvidia.com/events-and-presentations/events-and-presentations/default.aspx

2 – https://finance.yahoo.com/video/yahoo-finance-tech-editor-dan-211904796.html

3 – https://finance.yahoo.com/quote/NVDA/analysis?p=NVDA