The share price of semiconductor powerhouse Nvidia (NASDAQ: NVDA) has undergone a slight withdrawal in the near term, unable to surpass the $130 resistance threshold.
In summary, the stock is forecasted to resume a positive trajectory following the earnings call set for August 28. By the market’s close on August 26, NVDA had decreased by over 2%, trading at $126. In spite of the short-term fluctuations, the stock is still in the green, having surged more than 13% in recent months.
Nvidia’s price forecast
As anticipation mounts ahead of the earnings call, stock trading specialist Peter DiCarlo indicated in a post on X on August 27 that investors should brace for ongoing pullbacks for NVDA surrounding the earnings announcement.
According to DiCarlo, despite the stock’s recent downturn, there is a strong suggestion that a technical phenomenon referred to as a “squeeze” remains in effect. This pattern frequently precedes major price shifts, whether upward or downward, prompting traders to observe closely.
DiCarlo presented a “worst-case” scenario for Nvidia’s share price, forecasting a decline to $120 by Wednesday evening. This prediction is based on the latest price movements and technical assessment. Nevertheless, he quickly added that Nvidia’s weekly chart indicates “substantial bullish accumulation,” implying the overarching trend stays favorable.
The analysis reveals a sequence of red and green candles, illustrating the struggle between bulls and bears as the stock has accumulated buying momentum over the preceding weeks. Recent signs of selling have emerged. This aligns with DiCarlo’s assessment of a potential short-term retreat before the earnings report.
Looking ahead, the expert remains hopeful regarding Nvidia’s performance after the earnings release. Should the company’s financial outcomes align with or exceed market projections, he anticipates the stock to trade between $150 and $160 post-earnings announcement.
Consequences of Nvidia’s earnings
It’s important to mention that prior to the earnings call, analysts have asserted that this event is regarded as one of the most pivotal in the tech industry, with far-reaching implications for the entire sector. If the results exceed analysts’ forecasts, concerns over a potential AI bubble collapse could be postponed.
Overall, it is anticipated that Nvidia will report quarterly sales that have more than doubled, even as year-over-year growth experiences a slowdown. Analysts expect the chipmaker to announce $28.7 billion in revenue for the quarter, marking an increase of over 100% compared to the previous year.
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