Tomorrow after hours, Nvidia will release its quarterly report, attracting heightened attention given its position as:
→ the world’s largest company (market capitalisation of around $4.39 trillion);
→ a leader in the development of AI-related industries;
→ strong stock price performance — approximately +33% year-to-date, +108% from the yearly low.

Bullish Expectations

Analysts anticipate Nvidia will report revenue of around $46 billion, more than 50% higher than the same period last year.

Investors are counting on confirmation of robust demand for Nvidia’s chips from tech giants such as Microsoft, Google, Amazon, and Meta, all of which continue to expand capital expenditure on data centres to power AI workloads.

Further support for NVDA’s share price could come from positive news about demand for the new Blackwell chips and the resumption of sales in China following a recent agreement with the US government.

Bearish Concerns

Even strong results may fall short of “sky-high” optimistic expectations, potentially triggering profit-taking and a decline in Nvidia’s (NVDA) stock price. The stock trades at a high P/E multiple (price-to-earnings ratio), making it vulnerable to any negative news or even a minor miss against forecasts.

The primary concern is that Nvidia’s forward guidance might point to a slowdown in AI infrastructure spending growth by its key clients. Any hint of this could negatively affect not only Nvidia’s shares but also the broader technology sector.

Technical Analysis of Nvidia (NVDA) Chart

NVDA’s share price remains within an upward channel (shown in blue), with the following configuration:
→ until mid-August, the price remained within the upper half of the channel;
→ in August, the price declined towards the lower boundary (point A).

The $170 level appears to be a key support:
→ it is a round psychological level;
→ the low at point A looks like an aggressive test of this level, after which the price reversed upward.

From a bullish perspective:
→ support is provided by the lower boundary of the channel;
→ a long bullish candlestick (2) signals persistent demand.

From a bearish perspective, the $183 level looks like key resistance: NVDA’s share price slowed its advance here in early August, with repeated unsuccessful attempts to break higher.

Given the above, we could assume that the bulls may attempt to push through the $183 resistance on the back of the earnings release, but to do so, Nvidia’s results and guidance must at least meet the market’s extremely optimistic expectations.

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