Nvidia (NVDA) stock has had quite the bullish week as shares barrel toward a consolidation buy point with a weekly gain of more than 7%. The stock has moved higher in recent weeks, after company executives said that its new Blackwell chip was sold out for the next 12 months.
↑
X
This Leading Chip Stock’s Earnings Could Be Barometer For AI Spending Strength
Earlier this week, reports said that Apple iPhone maker Foxconn plans to increase server capacity to meet “crazy” demand for Nvidia’s Blackwell chips. The news boosted shares by around 4% on Tuesday. Additionally, chipmaker Taiwan Semiconductor (TSM) helped boost Nvidia shares with strong third-quarter sales, reported early Wednesday.
Currently, Nvidia stock trades just 4% below a 140.76 proper buy point from a consolidation. This level also represents its split-adjusted, all-time high.
The stock is also actionable after it broke above a recent horizontal resistance level at 131.26. Savvy investors could’ve also used a downward sloping trendline within the current base to buy the stock as it moved above the line on Monday.
Investors should note that the stock is currently 14% extended from its 50-day moving average. When stocks become heavily extended, there’s a higher risk of a pullback. However, while not quite at a new high, the relative strength line is nearing highs, a sure sign of strength.
Nvidia Stock: Second-Quarter Earnings
Nvidia has long been a pioneer in graphics processors used in such industries as health care, automobiles and robotics. But in March 2023, OpenAI’s ChatGPT made a huge technological leap forward with generative artificial intelligence.
And according to Chief Executive Jensen Huang, Nvidia’s AI-capable supercomputer paved the way for the “iPhone moment of AI.”
This helped the company amp up its earnings. Nvidia has achieved record top- and bottom-line growth in the five most recent quarters.
In the most recent quarter, Nvidia’s earnings beat Wall Street expectations. Meanwhile, sales of $30.04 billion were higher than the $28.7 billion analysts expected. Revenue also jumped 122% on a year-over-year basis.
Earnings of 68 cents per share of Nvidia stock also came in above analysts estimates for 65 cents. That was 152% higher than the prior year. The firm also guided higher for the current quarter with estimated sales of $32.5 billion vs. views of $31.7 billion.
YOU MAY ALSO LIKE:
See Stocks On The List Of Leaders Near A Buy Point
Find Winning Stocks With MarketSurge Pattern Recognition & Custom Screens
IBD Live: Learn And Analyze Growth Stocks With The Pros
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
Magnificent Seven Stocks: Latest News & Market Cap Weighting
