NVDA Analysis: Share Price Rises after Positive Report


Postmarket, NVDA jumped +9% to break the USD 500-per-share psychological level for the first time, supported by strong Q2 data:

→ earnings per share: USD 2.70 (expected USD 2.08);
→ company revenue: USD 13.5 bn (expected USD 11.2 bn);
→ 3Q revenue forecast: USD 16 billion

Nvidia also unveiled a USD 25 billion share buyback plan. Demand for NVDA shares also boosted stock prices of other AI-related tech giants: MSFT, GOOG, AMD.

Bullish arguments:
→ the report showed that interest in the topic of AI remains, and NVDA can be the main beneficiary of this progress. By some estimates, over the next 10 years, companies will spend USD 800 billion building and training their models.
→ the price of NVDA shares exceeded the level of USD 480, which previously served as resistance. Now support can be expected at this level.
→ Also, a gap, which should be formed at the opening of today's session, will certainly be able to provide support.

Bearish arguments:
→ resistance to the growth of the NVDA share price may be provided by the upper limit of the rising channel. It is possible that after the emotions from the strong report subside, there will be a correction — as an option, with a test of the psychological level of USD 500 per share.

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