Nvidia (NASDAQ: NVDA) has been rebounding in February after experiencing significant volatility amid concerns over a potential slowdown in artificial intelligence (AI) spending. Notably, the company’s upcoming earnings report is positioned as a key catalyst for the stock.
NVDA has recovered most of the losses incurred following the DeepSeek AI sell-off. As of press time, the stock was trading at $139.40, up 0.40% on the day and nearly 0.8% higher year-to-date.
With the firm announcing its earnings on February 26, attention will be on key metrics, including revenue growth, gross margins, AI and data center outlook, and, most importantly, guidance for the rest of the year.
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It can be argued that Nvidia’s ability to sustain its price above the crucial $120 support level after the DeepSeek volatility suggests the company has potentially restored investor confidence ahead of the highly anticipated earnings. As things stand, Nvidia’s financial growth remains strong and driven by its AI products.
For the January 2025 quarter, revenue is projected at $38.09 billion, reflecting a 72.31% year-over-year growth. Generally, if the company beats these estimates and offers strong guidance—especially regarding its next-generation Blackwell chips—it will be a significant growth catalyst for the stock.
NVDA stock price prediction after earnings
To determine how Nvidia might trade after the earnings call, Finbold turned to its AI price prediction tool. The AI model, leveraging several predictive algorithms, was tasked with forecasting NVDA’s share price on February 28, just two days after the earnings report.
Interestingly, the tool predicted NVDA’s share price will stabilize above the $140 level, setting an average price target of $145, reflecting a 3.94% increase.
This price target was supported by multiple AI models, including ChatGPT-4o, Grok 2 Vision, and DeepSeek Chat, which cited strong technical indicators and positive market sentiment as key drivers of the forecasted growth.
On the other hand, trading expert Peter DiCarlo warned in a February 19 X post that Nvidia’s upcoming earnings report could significantly impact its trajectory. He remains skeptical of its current price action despite a strong long-term uptrend.
DiCarlo noted that Nvidia has historically traded above its weekly market bias for two years, which is a bullish signal. However, after a sharp sell-off following the DeepSeek news, the stock rebounded to fill the gap, but the weekly market bias has now turned red, signaling caution.
On the monthly chart, institutional buying pressure appears to be weakening. January closed with lower lows, while February (still forming) shows lower highs—a pattern resembling a bull trap, where a brief rally precedes another decline.
DiCarlo predicted that Nvidia could rise to between $140 and $150 before facing rejection at a key resistance zone and resuming its downtrend. He advised long-term investors who bought below $50 or around $70 to $80 to consider taking profits.
Ultimately, Nvidia’s fate hinges on its February 26 earnings. Strong results could push it past $150, while disappointing numbers might confirm DiCarlo’s concerns.
What next for Nvidia
Despite recent volatility, Nvidia is still widely considered a safe bet in the AI space. Still, the DeepSeek situation has pressured the company to prove its dominance in the upcoming earnings report.
Most importantly, with DeepSeek claiming to train its models at a lower cost, Nvidia must reassure investors that its chips remain the leading choice in AI, a move that could potentially trigger a new all-time high for the semiconductor manufacturer.
Featured image via Shutterstock
