The stock value of semiconductor giant Nvidia (NASDAQ: NVDA) has experienced a minor retreat in the short term, failing to break through the $130 resistance level.
To summarize, the stock is predicted to embark on a positive path following the earnings call scheduled for August 28. As of the market closure on August 26, NVDA had fallen by over 2%, trading at $126. Despite the recent short-term volatility, the stock remains in a favorable position, having increased by more than 13% in the past months.
Nvidia’s price outlook
As excitement builds prior to the earnings call, stock trading expert Peter DiCarlo noted in a post on X on August 27 that investors should expect continued declines for NVDA surrounding the earnings report.
DiCarlo mentioned that, although the stock has recently dropped, there is a significant indication that a technical situation known as a “squeeze” is still present. This phenomenon often occurs before significant price movements, whether up or down, suggesting traders should stay vigilant.
DiCarlo shared a “worst-case” projection for Nvidia’s stock value, predicting a drop to $120 by Wednesday evening. This forecast is based on the latest pricing trends and technical analysis. Nonetheless, he promptly emphasized that Nvidia’s weekly chart shows “considerable bullish accumulation,” indicating that the prevailing trend remains positive.
The evaluation illustrates a series of red and green candles, depicting the battle between bulls and bears as the stock has gained buying momentum over the last few weeks. Recent indications of selling have surfaced, consistent with DiCarlo’s analysis of a possible short-term pullback ahead of the earnings announcement.
Looking forward, the analyst stays optimistic regarding Nvidia’s performance following the earnings release. If the company’s financial results meet or exceed market expectations, he foresees the stock trading between $150 and $160 after the earnings reveal.
Impact of Nvidia’s earnings
It’s noteworthy that before the earnings call, analysts have claimed that this event is seen as one of the most critical in the tech sector, with extensive ramifications for the entire industry. Should the outcomes surpass analysts’ predictions, apprehensions regarding a potential AI bubble burst could be delayed.
In general, it is expected that Nvidia will announce quarterly sales that have more than doubled, even while year-over-year growth faces a deceleration. Analysts anticipate the chip manufacturer will declare $28.7 billion in revenue for the quarter, representing an increase of over 100% compared to the previous year.
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