- 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 traders seem non-committed around 0.6500 amid mixed cues
AUD/USD extends its consolidative price move just above 0.6500 on Friday. The RBA's hawkish and upbeat market mood supports the Aussie, though mixed Australian PMI prints fail to inspire bulls. Moreover, bets for a slower Fed rate-cut path continue to fuel the post-US election USD rally and cap the currency pair.
USD/JPY slides to 154.00 as higher Japanese CPI fuels BoJ rate-hike bets
USD/JPY languishes near 154.00 following the release of a slightly higher-than-expected Japan CPI print, which keeps the door open for more rate hikes by the BoJ. That said, the risk-on mood, along with elevated US bond yields, could act as a headwind for the lower-yielding JPY and limit losses for the pair amid a bullish USD, bolstered by expectations for a less dovish Fed and concerns that Trump's policies could reignite inflation.
Gold price advances to near two-week top on geopolitical risks
Gold price touched nearly a two-week high during the Asian session as the worsening Russia-Ukraine conflict benefited traditional safe-haven assets. The weekly uptrend seems unaffected by bets for less aggressive Fed policy easing, sustained USD buying and the prevalent risk-on environment
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.