As Wall Street looks forward to Nvidia’s (NASDAQ: NVDA) earnings report after the close of the bell on November 20, key insights from the report are likely to dictate the stock’s trajectory.
NVDA stock has largely consolidated below the $150 spot, and the equity is looking for catalysts to push it toward the $200 spot.
The chipmaker broke out of a ‘Cup and Handle’ pattern in January, after its 10-to-1 stock split, rallying from $63 to $143, but has since been consolidating below the $150 level for six months, according to analysis by stock trading expert EliteOptionsTrader.
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To this end, the analyst noted that a strong earnings report will likely act as the catalyst to break this resistance, potentially propelling the stock toward $200 in the coming months.
According to the expert, a favorable earnings reaction could positively impact Nvidia and ignite a sector-wide rally in stocks specializing in artificial intelligence chips. Per the EliteOptionsTrader outlook, this momentum could lead to a conservative price target of $235 by the end of 2025.
Nvidia stock price analysis
This outlook comes when NVDA is showing strength, targeting the $150 spot. By the last trading session, the equity was valued at $147.01, up 4.89% for the day.
Ahead of the earnings, the NVDA share price has shown volatility, dropping 1.3% on the weekly chart. Meanwhile, in the pre-market ahead of the November 20 session, the stock is down 0.11%.
Impact of Nvidia Q3 earnings report
EliteOptionsTrader identified key metrics from the earnings report that will likely impact NVDA’s share price movement. The first focus is the company’s AI sales, where increased sales could further cement the semiconductor giant’s market dominance.
At the same time, the analyst pointed to market leadership. Nvidia’s ability to demonstrate a strong grip on the GPUs and chips market will be a crucial measure to follow. This aligns with Nvidia’s ability to foster new partnerships, especially in AI, gaming, and cloud computing, which could add further bullish sentiment.
Most importantly, the trading expert emphasized the financials, noting that beating analysts’ expectations on revenue, earnings per share (EPS), and forward guidance will be key. To this end, analysts are projecting a revenue increase of 84% year-over-year to $33.2 billion.
“With solid news across these areas, NVDA could see continued money flow as the AI revolution leader,” the expert noted.
What next for Nvidia?
Several Wall Street analysts also anticipate an impressive quarter from the AI giant. For instance, in an investor note, Wedbush Securities’ Dan Ives noted that investors should anticipate a blowout release.
“We expect another jaw-dropper tomorrow from the Godfather of AI Jensen that will put jet fuel in this bull market engine,” Ives said.
Amid this anticipation of strong performance, investor interest will focus on the forward guidance regarding the next-generation Blackwell chips, which are touted as the company’s future cash cow.
Interestingly, CEO Jensen Huang initially noted that the chips are recording “insane demand” and suggested the technology could account for “several billions” in revenue in Q4.
However, guidance around Blackwell might be conservative, considering the chips faced initial production delays. Additionally, reports revealed the chips were experiencing overheating issues, prompting Nvidia to ask suppliers to adjust the design of the platform’s server racks.
Overall, Wall Street analysts have issued a mixed outlook for Nvidia stock, with a majority pointing out that the equity has the potential to clinch the $150 spot.
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