Nvidia share price forecast ahead of second quarter results.

Nvidia’s (LON:NVDA) stock price will be in the spotlight this week as the company prepares for its second-quarter results expected on Wednesday. The stock fell to $178, which was slightly below this month’s high of $192. The price is around 26% above this year’s low.

Nvidia revenue overview

Nvidia is a leading semiconductor company valued at over $446 billion. The company designs some of the best graphics processing units (GPUs) that are widely used to handle the toughest computing tasks.

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Nvidia has become a major player in tech industries such as gaming, artificial intelligence, cryptocurrency mining, and autonomous driving.

Like AMD, Nvidia’s business boomed during the pandemic as demand for games increased. Over the same period, cryptocurrency prices have skyrocketed, leading to increased demand for high-powered mining equipment. Supply shortages have helped drive up the company’s prices.

Nvidia’s share price has lost momentum this year as the situation reversed. Cryptocurrency prices have fallen, leading to weak demand for mining equipment. People returned to offices, reducing demand for computers and games.

The next key catalyst for NVDA’s share price will be earnings, which are scheduled for Wednesday. Analysts have relatively modest expectations. They expect the company’s revenue to grow from $8.29 billion in the first quarter to $6.70 billion in the second quarter. That revenue will be slightly higher than the $6.5 billion earned in the same quarter of 2021. Still, Nvidia has a good track record of beating analyst estimates.

Nvidia’s stock price will react to the performance of its key subdivisions like data centers and gaming. Its crypto-mining division is expected to continue to struggle as prices for most coins have fallen. The title will also react to the company’s margins.

Nvidia stock price prediction

NVIDIA Stock

The four-hour chart shows that Nvidia’s stock price has rallied in recent days. This performance faded this month as it formed a small double top pattern at $192. In price action analysis, this pattern is usually a bearish sign.

The stock fell slightly below the 23.6% Fibonacci retracement level while the Relative Strength Index (RSI) fell below the neutral 50 level.

Therefore, due to the double top pattern, it is likely that the stock will fall after earnings. If that happens, the next key support to watch will be at $155. This is an important level since it is the right shoulder of the reverse head-shoulders pattern.

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Karen J. Nelson