NVDA Analysis: Share Price Rises after Positive Report

FXOpen

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.

Buy or sell shares with CFDs in some of the world's biggest publicly listed companies on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Shares

Apple in Trouble: Shares Fall More Than 3.5% Pfizer: Will It Be Ramped Up, or Has That Ship Sailed? Top 5 Stocks to Watch in September: Retail Bargain Bonanza, EVs Taking Charge and Tech Giants Make Hay Market Analysis: Shares of HPQ Fall Sharply after Report Tesla Makes Rebound after One Month of Decline

Latest articles

Forex Analysis

Market Analysis: American Currency Rises Sharply after Fed Meeting

As expected, the decision on the interest rate had a powerful impact on the markets. Thus, the euro/US dollar pair lost more than 100 pp in just a couple of hours and updated its recent low at 1.0630,

Commodities

Oil Analysis: Finally, A Bearish Reversal?

The policy of OPEC+ countries to voluntarily reduce oil production was one of the drivers thanks to which the price of WTI oil increased by approximately 40% from its low in June. In such cases, it is appropriate to use

Commodities

Central Bank Week Shakes Up Gold Market

Yesterday, the main event of the week took place — the Federal Reserve meeting, which had a noticeable impact on the market of assets denominated in US dollars. But besides the Fed meeting, there are a number of other events this

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.