All eyes on Nvidia Q1 Earnings: Is $1000 possible after earnings release?
Wall Street’s main indexes paused a month-long rally as investors held back from making big bets ahead of Wednesday’s Nvidia (NASDAQ: NVDA) earnings, which could decide the fate of the Wall Street rally and AI stocks. Nvidia’s stock deeply integrated into the recent AI-led rally on Wall Street, therefore watching their guidance and sales numbers could be telling about the AI market’s momentum. The company’s stock has nearly doubled in 2024 so far, and the market cap has crossed $2.3 trillion. The company has become the world’s №1 artificial intelligence (AI) chip designer, holding 80% of the market.
The company stock had a tough last month, but the share price has staged a strong recovery in the past few weeks. The strong comeback was supported by easing inflation data and a robust first-quarter earnings season. At the same time, investors are also anticipating a strong Q1 earnings report from Nvidia as the company consistently outperformed expectations in recent quarters.
Nvidia Q1 earnings preview
The AI chipmaker is set to release its first-quarter earnings report on May 22, after the market close. The company is expected to post quarterly earnings of $5.14 per share and revenues are expected to be $24.65 billion. Investors will be particularly keen to see how Nvidia’s CEO Jensen Huang sees demand developing across the rest of the year.
In Feb 2024, the world’s most valuable chip maker delivered another brilliant quarterly report. The company posted record Q4 revenue of $22 billion, boasting a 265% increase from the same quarter the prior year and earnings that blew past expectations. The company’s guidance also beat Wall Street estimates, driven by AI spending at its biggest customers, including Microsoft Corp. and Meta. Shares of the chipmaker surged 15% post the earnings announcement.
Is Nvidia going to announce a stock split?
Nvidia’s price is now approaching $1,000 and plenty of growth is on the horizon to trigger additional gains, therefore a split could make shares more accessible to more retail investors, as the lower share price can entice those who might not be able to afford whole shares right now. Back in May of 2021, when its stock was trading for about $700, Nvidia announced a 4-for-1 stock split.
$NVDA short-term technical forecast
The weekly chart shows that the Nvidia stock price has been in a slow uptrend in the past 4 weeks after the stock entered a technical correction last month. $NVDA shares closed above $950 on Thursday. Looking at the stock from a very short-term perspective, if the upside momentum continues there are chances the tech giant stock can easily rise to above the psychological level of $1000. A break above that level will lead to more gains. On the flip side, we can also expect a pullback towards $910 and then $880 If they don’t beat earnings or guidance is weak.
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