The giant chip-making technology company that makes software and fabless, graphics processing units, application programming interfaces for data science and more, enjoyed a huge surge in its share price after its results were released after the US stock market closed.
Highlights included the following:
Both figures beat market expectations with EPS managing to exceed one dollar again for the first time in three quarters while revenues were up 19% from the preceding three months.
Part of the reason for these positive results was the record revenues from Nvidia’s data centre group, which reported $4.28 billion in sales versus expectations of $3.9 billion, a 14% annual increase.
In addition, the market was heavily focused on artificial intelligence (AI) as the company's next major growth driver and the chip giant more than delivered in its guidance for futures sales.
The company said that it expects revenues of $11 billion (+/-2%) for the next quarter, more than 50% higher than the $7.15 billion that the market was expecting before the release.
In a challenging environment for technology companies, which are suffering from still-high inflation and uncertainty over whether the Fed's rate hikes will end soon, Nvidia expects to make a difference in the following trends.
It seems that investors are truly excited about what the future holds, as Nvidia's stock rose 28% after the market close to new all-time highs.
On a technical level, Nvidia shares have been recovering from a sharp fall after reaching 346 at the beginning of November 2021. From that level the stock price corrected to 108 in October last year, a level not seen since mid-2020.
The chipmaker has recovered strongly after touching that low, rising 158% and closing at 305.31 on Wednesday. The release of its financial results has seen the stock price jump sharply potentially reaching a new high at 382.
If it continues with the current bullish momentum, the next relevant resistance is at 390 and then 400.
The alternative scenario is that after this strong surge, the stock will be oversold which will be reflected in the RSI (>70). This means the stock could correct towards first support located at 367.
The narrow breadth and leadership in US stock markets has been a concern for several prominent Wall Street watchers for some time.
8 June 09:00
Stock markets are finding some relief after the US debt limit deal was approved by the House, with the Senate’s vote now set to be a formality.
1 June 12:05
US tech stocks have been on a seemingly unrelenting uptrend for much of this year. The NQ100_m, which tracks the Nasdaq 100 index, is edging higher even after the Nasdaq 100’s gain of 1.2% yesterday (Wednesday, May 17th) fuelled by optimism that the US can avert a first-ever default.
18 May 13:43
Disney’s shares fell by 4.9% in Wednesday’s post-market session as the company released its latest quarterly earnings after US markets closed yesterday.
11 May 12:56
There's a better website for you
A new exciting website with services that better suit your location has recently launched!
Sign up here to collect your 30% Welcome Bonus.