Nvidia Stock Soars On Blowout GuidanceSoaring demand for the chips needed to train the latest wave of generative artificial intelligence systems such as ChatGPT led Nvidia to issue a revenue forecast far ahead of Wall Street expectations, prompting a surge in its stock price in after market trading.
The US chipmaker on Wednesday said it expected sales to reach 11bn dollar in the three months to the end of July, more than 50 per cent ahead of the 7.2bn dollar analysts had been expecting and confirming its position as the biggest short-term beneficiary of the AI race that has broken out in the technology industry.
The forecast fuelled a 27 per cent leap in Nvidia’s shares, which had already more than doubled since the start of the year, and lifted its stock market value to a record 960 bn dollar.
Jensen Huang, chief executive, said the company was “significantly increasing our supply to meet surging demand” for its entire family of data centre chips, including the H100, a product launched this year that was designed to handle the demands of so-called large language models such as OpenAI’s GPT4.
The race in the tech industry to develop larger AI models has led some customers to worry privately about a shortage of H100 chips, which only went on sale earlier this year. However, Nvidia’s $4.28bn in sales to data centre customers in its latest quarter topped even the most optimistic analysts’ forecasts, and the company said there had been strong sales of both the H100 and its A100 chips, based on its previous chip architecture.
Nvidia’s forecast noted a potential doubling of sales to data centre customers in three months, even though data centre sales were running at an annualised rate of $17bn in the opening quarter of this year. Growth is coming from customers across the board, Kress said, with consumer internet companies, cloud computing providers and enterprise customers all rushing to apply the generative AI to their businesses.
The bullish forecast came as Nvidia reported revenue and earnings in its latest quarter, to the end of April, had also topped forecasts, thanks to a jump in sales to data centre customers as demand for AI took off. Revenue reached $7.19bn, up 19 per cent from the preceding three months but down 13 per cent from the year before, as sales of chips for gaming systems dropped.
Earnings per share rose 22 per cent from a year before to 82 cents, or $1.09 on the pro forma basis Wall Street judges the company. The consensus view on Wall Street had been for revenue of $6.52bn and pro forma earnings of 92 cents a share.
now let's delve into the numbers. Nvidia's different business units did not all perform equally well during the quarter - which can be expected, of course. Nvidia's data center business grossed revenues of $4.3 billion during the first quarter, which represents a new record high. Data center demand is not very cyclical, and companies kept investing in new equipment despite a potential recession being on the horizon. This can be explained by the fact that data centers are mission critical for many companies, so they don't really have a lot of choice when it comes to allocating capital to this space. Strong data center sales also have been seen in the results of other chip companies such as Advanced Micro Devices (AMD). Both Nvidia and AMD also were able to benefit from the weak performance of their competitor Intel (INTC), as Intel has been losing market share in the data center space in recent quarters due to self-inflicted problems and an unconvincing product line-up.
Nvidia is a major graphic chip or GPU player and is thus heavily impacted by the performance of related end markets. This includes both cryptocurrency mining and gaming. While some cryptocurrencies can't be mined with GPUs economically, such as Bitcoin, others, such as Ethereum, can be mined with GPUs. Ethereum moved from a proof-of-work model to a proof-of-stake model in the fall of 2022, but some miners still use GPUs for Ethereum mining. Not surprisingly, Nvidia's sales to this end market depend on the price for cryptocurrencies - when cryptocurrencies are expensive, miners are more eager to acquire additional GPUs and they may also be willing to pay high prices for them. During times when cryptocurrencies are less expensive, mining is less profitable, and GPU demand from cryptocurrency miners wanes. This has had an impact on Nvidia's sales in the past and likely played a role in Nvidia's Q1 sales as well.
GPU sales have been under pressure in recent quarters due to lower demand by gamers as well. Many that like to play video games upgraded their hardware during the lockdown phase of the pandemic when staying at home meant that consumers had more time for video games. With many gamers having relatively new equipment, demand has declined in the recent past. At the same time, inflation pressures consumers' ability to spend on discretionary goods. On top of that, some consumers prefer to spend their money on experiences over things now as there are no lockdowns or travel restrictions in place any longer. All in all, this has resulted in a difficult macro environment for Nvidia's gaming business.
Combined, the headwinds for the gaming market and the cryptocurrency market explain why Nvidia's sales and profits kept declining during the most recent quarter, relative to the results the company was able to generate one year earlier. The strong performance in the data center space was not enough to offset the headwinds Nvidia experienced in other areas.
I personally going to take huge profit right now and wait for 250 $ levels
Nvidianews
UPDATE: Nvidia on track to its target of $562.33As mentioned before, there was a large Cup and Handle that formed on the price chart.
We then had the price break up and out of the brim level, showing intense demand and buying.
We also have 7>21>200 MA - Bullish and RSI>50 (Bull zone).
The first anticipated target we set was a medium term one to $562.33
Nvidia continues to make higher highs and all time highs. And this will continue as long as people are feeling bullish and confident with the current AI, Machine learning, deep learning
and quantum computing developments on the rise.
ABOUT THE COMPANY
Founding:
Nvidia Corporation was founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem.
Headquarters:
The company is headquartered in Santa Clara, California, USA, in the heart of Silicon Valley.
GPU Pioneer:
Nvidia is credited with inventing the Graphics Processing Unit (GPU) in 1999, revolutionizing the gaming industry by allowing for more complex visuals and 3
Industries:
While Nvidia is best known for its impact on video games, its GPUs are also used in areas like artificial intelligence, high performance computing, data centers, automotive technology, and more.
GeForce:
One of Nvidia's most well-known product lines is the GeForce series, which are GPUs designed for consumers, primarily for gaming and video editing.
Tegra Processors:
Nvidia also produces Tegra mobile processors for smartphones and tablets, as well as vehicle navigation and entertainment systems.
AI & Deep Learning:
Nvidia has made significant contributions to the fields of AI and deep learning, with their GPU architectures being used to accelerate these tasks.
Nvidia Analysis 09.12.2022Hello Traders,
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Nvidia coming into resistance? NVIDIA
Short Term - We look to Sell at 210.20 (stop at 228.47)
Our bespoke support of 210.00 has been clearly broken. We look to sell rallies. Rallies continue to attract sellers. The 61.8% fibonacci extension level is the target.
Our profit targets will be 160.25 and 124.10
Resistance: 210.00 / 250.00 / 290.00
Support: 160.00 / 150.00 / 126.00
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Nvidia Stock projection after the drop Hello everyone, as we all know the market action discounts everything :)
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Nvidia Stock starting push back up after the drop caused by the Evergrande problems where we see the stock pushing from 206.27 up to 225.34 in 3 days, That's almost a 10% increase in a very short period of time.
NVDA has an average volume of 26045000. This is a good sign as it is always nice to have a liquid stock.
Both The Long-term trend and Short-term trends are looking positive.
Possible Scenarios for the market :
Scenario 1 :
The market has reached the first resistance line located at 224.58 but a breakout didn't happen yet, Looking at how the trend is moving we should be seeing a breakout soon that will jack the stock price up and the first stop this stock is doing will be at the second resistance at 229.58 where it might have some push back from the Bears that could drive the price back to the 224.58 level, After reaching that point the Bulls will pull up and gather buy power to push the market to the 237.66 level.
Scenario 2 :
The market has reached the first resistance line located at 224.58, The Bears could step in and take control and drop the price here to show the Bulls that it's not gonna be easy for them to gain control which will lead the price dropping to the first support level at 214.42 where the battle over control will happen with Good chances of Bulls winning which will be the start of the push to the 237.66 level
Technical indicators show :
1) The market is above the 5 10 20 50 100 and 200 MA and EMA (Strong Bullish Sign)
2) The RSI is at 58.86 showing good strength in the market. No divergence has been found between the indicator and the market
3) The Stoch is in the upper end of the middle zone showing good momentum, With a positive crossover between the %K (78.31) and %D (52.83)
Daily Support & Resistance points :
support Resistance
1) 214.42 1) 224.58
2) 209.42 2) 229.58
3) 206.84 3) 233.65
Fundamental point of view :
When comparing the yearly performance of all stocks, we notice that NVDA is one of the better performing stocks in the market, outperforming 84% of all stocks and NVDA has a Return On Assets of 18.32%. This is amongst the best returns in the industry NVDA outperforms 88% of its industry peers.
The Earnings Per Share has grown by an impressive 80.78% over the past year.
"One of the reasons the stock is moving up can be seen in the Indicator column. The stock received a boost in its price target from Bank of America on Sept. 17, 2021. If NVDA stock reaches that price target it would be a gain of over 25% from the consensus price target. Bank of America may be reacting to Nvidia’s push to become seen as more than just a chip company and is spending over $1 billion on research and development to support that aim." According to Marketbeat
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
NVIDIA to bottom fib retraction zoneTechnicals and fundamentals supporting short position
- Nvidia has risen 25% in the last month to date, suggesting it may have a gap to fill - 90% of gaps get filled
-Overbought on every timescale and has rarely stayed above a 80% overbought level for more than a few days, which it is long
- Stock split coming in mid-July, which will jumpstart a stock buying spree as the stock becomes more accessible to retail investors…due for a correction before the
- Based on this chart, Nvidia has retreated into its bottom fib zone every time after hitting its peak fib zone, which is where it is currently positioned
NVIDIA CORP signal buy , NVDA Stock a buy opportunity
the purchase from the second green candle has two reasons: the breakout of the VWAP indicator and the interesting volume compared to other volumes this means that this market is at the start of its uptrend, therefore a buy signal
if you agree with this analysis like it and comment to encourage me
the pro analyst
Let's take a look on NVIDIA today As shown in the graph, it seems there is an equilibrium during a certain period (Period specified by the rectangle.
Any huge break of this rectangle gives an idea about the trend of the stock price. if it breaks it down, the stock has a good chance to b decreasing, however, if it an up break, the stock will be increasing.
If none of these cases were realized, the NVIDIA stock will continue its equilibrium.
NVDA (NVIDIA) Stock Analysis: Intraday Timeframe. Conclusion for today’s NVDA stock analysis:
NVIDIA (NVDA) is expected to find support between 171.12 and 167.32 before price resumes current uptrend from 130.73.
Previous NVDA technical analysis looking at its 6 hour timeframe moving averages (50 and 200), their implications and also price development anticipated is provided below.
NVDA Stock analysis for today uses a different approach to investigate price action via the use of Elliott wave analysis. Two of the major benefits of using the Elliott wave principle amongst others are the following:
• It helps us provide context for price action
• Provides point(s) of invalidation for using it in chart analysis.
Price action successfully held at the upper boundary of support (128.47) between 21 December 2018 and January 03, 2019, and is part of the basing process for price action since November 19, 2018.
Use of Wave analysis for today therefore focuses only on the most recent bullish price swing from January 04, 2019 to current date.
Minuette wave (i) commenced at 130.73, followed by Minuette wave (ii), with Minuette wave (iii) identified as the most recent wave that has just terminated.
This (wave iii) did finish only a few points away from the top boundary (194.59) of overhead resistance mentioned in the previous analysis.
Minuette wave iv is thus currently underway, and is anticipated to terminate in the region of the subminuette wave iv of Minuette wave (iii) i.e. 4th wave of one lesser degree.
This region coincides with support as indicated on the 6 hour timeframe chart between 171.12 and 167.32 where Minuette wave (iv) would have retraced ~38.2% of Minuette wave (iii).
Minuette wave (v) is therefore expected to resume upon termination of wave (iv). i.e. this implies higher prices in NVIDIA.
Point of invalidation for this analysis is wave (iv) overlapping wave (ii), which means price should not continue to sell off and close below 134.71.