- Nvidia released Q4 earnings late Wednesday.
- NVDA stock immediately shot higher on EPS beat.
- Revenue dropped 21% YoY.
- Nvidia stock has risen into a resistance zone between $225 and $230.
Nvidia (NVDA) stock surged 8.4% in Thursday's premarket after the premier US chip designer released fourth quarter earnings that came in ahead of Wall Street expectations. Nvidia revealed adjusted earnings per share (EPS) in the quarter ending in December of $0.88, a solid 10% ahead of analyst consensus. Revenue of $6.05 billion also beat Wall Street's mark by $30 million.
Nvidia stock earnings: Revenues fall 21% YoY
The larger picture makes the positive earnings news a little more suspect. Nvidia's revenue was still down 21% YoY, largely due to the severe decline in gaming revenue seen over the past two quarters. Data center revenue missed expectations in this quarter as well, but the return of Nvidia's gaming segment in Q4 seems to have saved the quarter.
Data center revenue of $3.62 billion fell short of Wall Street's consensus projection of $3.87 billion. Gaming revenue of $1.83 billion came in well above the $1.6 billion expectation. Two smaller segments also showed promise. Robotics & Auto brought in $294 million – ahead of the $267 million expected. Professional Visualization revenue of $226 million outdid the $195 million expected by analysts.
CEO Jensen Huang spoke heavily about Nvidia's promise in the artificial intelligence sphere. Huang bragged about Nvidia's DGX AI supercomputer that now allows customers to use it remotely via browsers, adding that Oracle (ORCL) would soon be joined by Microsoft (MSFT) and Alphabet (GOOGL) as cloud purveyors able to provide their clients with access to the supercomputer.
"NVIDIA AI as a service offers enterprises easy access to the world's most advanced AI platform, while remaining close to the storage, networking, security and cloud services offered by the world's most advanced clouds," Jensen Huang boasted during the earnings call.
Jefferies and Evercore ISI both raised their price targes on NVDA stock to $300, while Bank of America placed its price target at $275.
Nvidia stock forecast
Nvidia stock will likely remain stuck in the resistance zone ranging from $225 to $230. This range worked to push price action lower back in September 2021 and April 2022. NVDA stock has already gained tremendoulsy year to date at 45%, so this supply level should see some profit-taking by bulls. Remember, not everyone is a long-term trader. A break of $230 would have bulls eyeing $260, but I am not certain that is the easiest path at the moment. Bulls should note that the Moving Average Convergence Divergence (MACD) indicator is pointing to an upward path, giving them more evidence that price action remains ready to accelerate.
Failure to break through this thicket will send Nvidia stock back to the $206 to $210 support region or the $190 to $193 zone.
NVDA 4-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD touches two-week high near 0.6350 after RBA meeting minutes
AUD/USD attracts buyers for the fifth straight day on Tuesday and climbs to a nearly two-week low near 0.6350 following the release of RBA minutes, which indicated that the May meeting would be an opportune time to reconsider reacting to potential risks. This, along with a positive risk tone, acts as a tailwind for the Aussie.
USD/JPY trades with positive bias above 143.00; upside potential seems limited
USD/JPY gains some positive traction on Tuesday and now seems to have snapped a three day losing streak to a multi-month low touched last week. The upbeat market mood undermines the safe-haven JPY and lends support amid a modest USD uptick.
Gold price holds steady above $3,200; remains close to all-time peak
Gold price trades above the $3,200 mark following the previous day's modest pullback from a fresh record high as the escalating US-China trade war continues to underpin the safe-haven bullion. Moreover, the Fed rate cut bets lend support to the XAU/USD.
US Homeland Security probes Anchorage digital bank amid Blackrock custody expansion
US Homeland Security’s “El Dorado Task Force” is investigating Anchorage Digital Bank for potential financial misconduct. Anchorage previously faced regulatory action for BSA/AML compliance failures.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.