Nvidia Corporation (NASDAQ: NVDA) is once again at the center of market conversation as it approaches its third quarter earnings report today. The recent rise in the stock price, which rose 4.6% yesterday to $146.57, is a sign of widespread optimism among the investor community. But can NVIDIA live up to its hype, or was the bar set too high?
Earnings expectations: Is there a earnings tsunami?
Analysts predict a significant 84% year-over-year revenue increase due to high demand for AI-powered solutions. Nvidia’s most valuable division, its data center division, is predicted to achieve unprecedented results. This isn’t just growth, it’s acceleration, with NVIDIA’s addressable market projected to exceed $100 billion by the end of 2025.
In a bold move, Stifel analysts raised their price target to $180, citing Nvidia’s near-limitless potential in hyperscale data centers, enterprise computing, and AI innovation. “The future does not arrive, it is built,” they emphatically pointed out. Nvidia will play a pivotal role in shaping that future.
Chart check: Where is the action?
Zooming in on Nvidia’s daily chart, the stock price remains within range of key levels.
On the upside: $130 and $139.85 may pose hurdles in the short term. Support: Nvidia’s fundamentals look solid below $115.38 and $102.86.
Yesterday’s closing price was $119.14, suggesting strong buying momentum. A break above $130 could not only break the resistance but also ignite a new wave of bullish enthusiasm.
Investor psychology and market position
Nvidia is more than just a leading semiconductor company; it’s a force shaping the future of AI. As demand for high-performance computing accelerates, the company positions itself as a key player at the forefront of this technological revolution. Expectations for the company’s AI chips are higher than ever, making this earnings season not just a routine but a pivotal moment in Nvidia’s trajectory.
As the earnings announcement approaches, speculation is rife in the market. Will Nvidia stock hit new highs and strengthen its dominance, or could the weight of soaring expectations hold the stock back?
