Nvidia Stock Faces Uncertainty Ahead of Q4 Earnings

Nvidia Corp (NVDA) is set to announce its fourth-quarter earnings this Wednesday. Analysts are predicting an earnings per share (EPS) of 84 cents and revenue of approximately $38.05 billion, with reports expected after market hours.

Although the stock has shown substantial growth of 60.11% over the past year, it has experienced a decline of 8.44% year-to-date.

In this article, we will analyze the current state of Nvidia's stock and how it aligns with Wall Street's expectations.

Nvidia Stock Struggles With Bearish Trends Before Q4 Earnings

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Nvidia's stock, currently valued at $129.88, is grappling with significant bearish pressure as it approaches the fourth-quarter earnings announcement. The stock trades beneath important short-term moving averages, including the five-day, 20-day, and 50-day exponential moving averages, indicating ongoing selling sentiment.

The eight-day simple moving average (SMA) is at $134.85, while the 20-day SMA stands at $129.93, both suggesting a negative outlook. Similarly, the 50-day SMA is recorded at $134.03, contributing to the bearish sentiment.

Despite this, some technical indicators point towards a possible stabilization. The 200-day simple moving average at $126.40 acts as a strong long-term support level. However, the Moving Average Convergence Divergence (MACD) indicator is at a negative 0.31, further supporting the bearish trend. The Relative Strength Index (RSI) is currently at 46.78, placing the stock in neutral territory, without indication of a significant reversal yet.

Investors should monitor for any breakouts above the key moving averages, which would confirm a potential bullish reversal, or further declines that would solidify the existing downtrend.

Analysts Remain Optimistic: 52% Upside Potential for Nvidia Stock

Ratings & Consensus Estimates: Currently, the consensus opinion among analysts is a "Buy" rating for Nvidia stock, with a suggested price target of $172.28. Recent reports from analysts at Rosenblatt, Morgan Stanley, and Tigress Financial indicate a promising upside of 52.26%, with the average price target set at $197.33.

Current Price Action: Nvidia closed the trading day on Tuesday at $126.63, marking a decrease of 2.8%.

Conclusion

As Nvidia prepares to release its Q4 earnings, investors and market watchers are increasingly curious about the company's ability to defy the bearish momentum affecting its stock. Analysts maintain an optimistic outlook, suggesting significant upside potential. The coming days could be pivotal for Nvidia as it navigates this challenging market environment.

Nvidia, Earnings, Stocks