Nvidia’s stock price declined in the first hour of trading in the New York session on Friday, snapping a three-session winning streak. The AI chip giant is now perched at the top of the global company ranking by market capitalisation, with its value at $3.6 trillion, about $200 billion higher than second-placed Apple. Also, Nvidia just replaced Intel Corp in the Dow Jones Index, in a statement move signifying its chips industry dominance.
The price decline is unlikely to last long as Nvidia (NASDAQ: NVDA) currently has a two-pronged propulsion, in Donald Trump’s election victory and the company’s upcoming earnings call. The company is expected to report impressive results when on November 8, and potentially beat consensus estimates once more.
For the quarter ending October, analysts forecast that Nvidia is likely to report revenues of $32.96 billion, up from $30.04 billion in Q2. Similarly, the EPS is projected to grow to $0.74 in Q3 from Q2’s $0.67. Meanwhile, Trump’s win ushers in the era of lower corporate taxes, tariffs and restrictions on Chinese AI chip makers.
During his first term in office, Trump went hard on Chinese tech companies and imposed stringent restrictions on the country’s leading companies, Huawei and ZTE. His second term will likely follow a similar script, and that could limit market access by Chines chip manufacturers not just in the United States, but on a global scale.
Nvidia share price pivots at 147.70, with the momentum indicator favouring the downside. If resistance persists at the pivot mark, the stock will likely find the first support at 146.20. However, if the downward momentum becomes stronger, the decline could extend and test 144.85.
On the other hand, moving below 147.70 will activate the upward momentum. In that case, the next resistance is likely to come at 148.90. However, if the buyers extend their control, it could enable a break above that level, which would invalidate the downside narrative. Also, that could see gains extend to test the second resistance at 150.00.
This post was last modified on Nov 10, 2024, 14:02 GMT 14:02