Nvidia’s Stock Takes a Dip Despite Strong Earnings Report

Stock Wavers in Volatile Trading After Earnings Beat

Nvidia Corp NVDA released impressive earnings on Wednesday, but its stock fell 3% in after-hours trading. On Thursday morning, shares fluctuated before opening up 5%, but soon lost momentum.

By mid-morning, Nvidia shares were down 1.23%, trading at $144.10. This decline seems to be linked to the high expectations surrounding the AI leader, which left its blockbuster results feeling less impactful than anticipated.

Strong Performance Underlines Stock’s Potential

Headquartered in Santa Clara, California, Nvidia reported an 8% increase in earnings per share and a nearly 6% revenue beat compared to estimates. Year-over-year revenue grew an astonishing 93.71%, now at $35.1 billion, driven by soaring demand for AI chips.

Even with the turbulent trading on Thursday, technical indicators show Nvidia’s stock may remain resilient.

Chart created using Benzinga Pro

The stock remains above its 8-day, 20-day, 50-day, and 200-day simple moving averages (SMA), indicating a strong bullish foundation:

• 8-day SMA: Nvidia is at $145.29, outpacing its $145.20 SMA, creating a short-term bullish signal.
• 20-day SMA: The price of $145.29 exceeds the $142.79 average, further emphasizing the bullish outlook.
• 50-day SMA: At $145.29, Nvidia is well above its 50-day average of $133.52, indicating solid momentum.
• 200-day SMA: With the 200-day average at $110.41, it remains significantly lower than current levels, showcasing long-term bullish strength.

The MACD (moving average convergence/divergence) also backs a bullish perspective with a reading of 3.19. The RSI (relative strength index) stands at 56.51, suggesting the stock is in neutral territory, allowing space for potential upward movements without being overbought.

What’s Next for Nvidia’s Stock?

Nvidia’s impressive fundamentals align with its ambitious AI goals. Still, investors are left to ponder whether the stock can maintain its upward momentum in a challenging market.

Market watchers will keenly observe Nvidia’s performance as it looks to stabilize following the initial earnings reaction.

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