Nvidia Corp NVDA will report its third-quarter earnings on Wednesday. Wall Street expects 75 cents in EPS and $33.12 billion in revenues as the company reports after market hours.
The Santa Clara, California-based company’s stock is up 178.02% over the past year and 190.95%% year-to-date.
The stock slipped as much as 3.4% on Monday before paring losses, as reports of overheating in its new Blackwell AI servers rattled investors.
Blackwell Scrutiny Meets Early Adoption In Nvidia’s AI Push
The Information highlighted recurring issues with Blackwell, including design flaws reported in August that delayed production to the December quarter. While Nvidia downplayed concerns, calling engineering iterations “normal,” the stakes are high.
CEO Jensen Huang expects Blackwell chips to drive billions in fourth-quarter sales, with major buyers like Meta Platforms Inc META, Microsoft Corp MSFT, and xAI already in line.
Dell Technologies Inc DELL confirmed shipments of Blackwell servers in its PowerEdge systems, signaling early adoption despite the concerns.
Let’s look at what the charts indicate for Nvidia stock and how the stock currently maps against Wall Street estimates.
Nvidia Stock Sees Buying Pressure Ahead Of Q3 Earnings
As it head towards reporting its third-quarter earnings, Nvidia stock is under a haze of mixed technical indicators. The charts reflect a moderately bearish trend tempered by slight buying pressure.
Chart created using Benzinga Pro
At $142.07, Nvidia stock presents conflicting signals across key moving averages and momentum indicators.
The eight-day SMA (simple moving average) of $144.80 exceeds the current price, signaling bearish momentum in the short term. Though the stock has inched above the 20-day SMA of $141.98 saving some bullish momentum for the near-term. both.
The longer-term trends continue to harp a bullish tune for this AI juggernaut. The 50-day SMA at $132.32 and the 200-day SMA at $109.62 both trail the current price, providing bullish confirmation for NVDA bulls eyeing a broader horizon.
Momentum indicators like the MACD, which stands at a robust 3.03, further bolster the bullish outlook. Yet caution lingers as the Relative Strength Index (RSI) sits at 53.53, heading towards the overbought threshold.
While NVIDIA's share price may seem pressured in the short term, its longer-term technicals suggest resilience ahead of its earnings.
The question remains: Will fundamentals align with these signals, or will earnings introduce new volatility? Investors may find this a pivotal moment to reassess positions.
Nvidia Analysts See 28% Upside
Ratings & Consensus Estimates: The consensus analyst rating on Nvidia stock stands at a Buy currently with a price target of $162.97. Recent analyst ratings from Stifel, Truist Securities, and Rosenblatt imply a 28.25% upside for Nvidia stock, with an average price target of $182.33.
Price Action: NVDA stock closed the trading day Monday at $140.15, don 1.29%.
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