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Nvidia stock (NVDA) surged 6% in extended trading Wednesday after the company reported data center revenue of $22.6 billion, up 427% year over year. The data center segment contributed 87% of total revenue for the quarter.
Nvidia management also announced a 10-1 stock split, so we’ll be buying a nice position for the kids Coverdell College Savings accounts soon enough! Booyah Jensen!

Nvidia Pummels the Bears

Nvidia stock was raised to a full position recently, as it recaptured the 50-day moving average and reversed the recent downtrend. A handle formed on the relatively shallow cup, with a lower entry.
Nvidia stock
Nvidia stock (NVDA) position size had previously been trimmed by a quarter, down to half size position after it fell below our benchmark.

Nvidia – The Company

Recently, the stock surged toward the 1,000 mark, a key psychological level, before reversing sharply in recent days. In addition, volume hit the highest level for a down day in at least a year.
Nvidia stock weighting on IBD’s Leaderboard got raised by another quarter after it cleared a flat base entry of 505.48.
The recent 12 week base and cup and handle pattern, gave the trading room an opportunity to enter an Iron Condor with strikes 11% above and below Wednesday’s pre-earnings price action. We also leaned bullish with a 995/1000 call vertical to top off the Iron Condor trade.
Nvidia Stock

Nvidia (NVDA) is a titan in the realm of artificial intelligence (AI) and graphics processing, has once again demonstrated its prowess with a stellar earnings report for the first quarter of 2024. The company’s financial performance has not only exceeded expectations but has also set a robust foundation for the remainder of the year. Let’s delve into the details of NVIDIA’s earnings and explore the potential that lies ahead for this tech juggernaut.

Earnings Overview: NVIDIA reported a record-breaking revenue of $22.1 billion for the fourth quarter ended January 28, 2024, marking a 22% increase from the previous quarter and a staggering 265% rise from the same period a year ago. This impressive growth was spearheaded by the company’s Data Center revenue, which soared to $18.4 billion, up 27% from Q3 and up 409% year-over-year. The company’s GAAP earnings per diluted share stood at $4.93, climbing 33% from the previous quarter and an astonishing 765% from the previous year.

Market Response: The market responded favorably to NVIDIA’s earnings announcement, with the stock rallying nearly 5% in post-market trading on May 22. This surge is a testament to the confidence investors have in NVIDIA’s continued growth and its ability to outpace Wall Street forecasts consistently.

Forward-Looking Projections: Looking ahead, NVIDIA has forecasted second-quarter revenue of $28 billion, plus or minus 2%, which surpasses analysts’ average expectations of $26.66 billion. This projection is indicative of NVIDIA’s confidence in its growth trajectory, particularly in the burgeoning AI chip market.

AI and Computing Demand: The demand for AI and accelerated computing has reached a tipping point, with NVIDIA at the forefront of this technological revolution. The company’s Data Center platform is powered by diverse drivers, including the need for data processing, training, and inference from large cloud-service providers and specialized GPU entities. Enterprises and consumer internet companies are also contributing to the heightened demand for NVIDIA’s products.

Product Innovations: NVIDIA’s product pipeline remains robust, with major new product cycles on the horizon. The company’s RTX platform, introduced less than six years ago, has become a massive PC platform for generative AI, enjoyed by over 100 million gamers and creators. The upcoming launch of the Blackwell architecture and the shipment of the H200 graphics processing unit (GPU) are expected to further solidify NVIDIA’s position in the market.

Nvidia – Forecast

Stock Forecast: Analysts remain bullish on NVIDIA’s stock, with an average price target of $1,483.96 for 2024, reflecting a potential increase of +55.57% from the last recorded price6. The long-term outlook is even more optimistic, with projections indicating that NVIDIA’s stock could reach $2,115.19 by 2030.

Nvidia – Conclusion

NVIDIA stock (NVDA) remarkable first-quarter earnings and its ambitious projections for the future underscore the company’s dominance in the AI and computing sectors. With a strong product lineup and a market ripe for AI-driven innovation, NVIDIA is well-positioned to maintain its upward trajectory throughout the remaining year and beyond. Investors and tech enthusiasts alike will be keenly watching as NVIDIA continues to push the boundaries of what’s possible in the world of technology.

Join us today in the trading room for our LIVE broadcast during market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.

Happy Trading, 

 

Vinny

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