Nvidia Stock News and Forecast: What to expect from NVDA earnings?

Nvidia stock is set to report earnings after the close on Wednesday.
NVDA stock rallied over 9% on Tuesday as Russia's tension eased.
Nvidia shares were a top performer in 2021 but so far have struggled in 2022.

Ivan Brian FXStreet

Nvidia (NVDA) shares rallied nearly 10% on Tuesday as the company benefited from a more favorable risk backdrop. This was the result of some news flow suggesting Russia was pulling back some forces from the Ukraine border. Riskier assets and growth stocks then outperformed to play catch up as these have been the hardest hit sectors this year. NVDA shares are down nearly 10% this year but are still up 70% in the last 12 months.

Nvidia Stock News

Nvidia releases its Q4 2021 earnings after the close on Wednesday. The semiconductor space has been a top performer in 2021 due to surging demand from lockdown activities, namely working from home and gaming. This has led to shortages of semiconductor chips. Cloud revenues have been strong so far from every major earnings report this quarter. IBM, Microsoft (MSFT) and Amazon (AMZN) all reported strong performances from their cloud divisions. Hence, Nvidia should follow suit.

Nvidia shares have suffered some fallout from the abandoned acquisition of Arm, which failed for the most part due to regulatory challenges. This will cost Nvidia over $1 billion. Nvidia is expected to post earnings per share of $1.22 on revenue of $7.42 billion when it reports. Wall Street analysts are strongly bullish on the company and indeed we have to go back to 2018 for the last time Nvidia missed earnings on either EPS or revenue.

Nvidia Stock Forecast

Yesterday's move has presented an interesting pivot with the stock sitting just at the top trendline. A break and $310 is the obvious target. Failure and the 200-day moving average at $228 will be the first target of support. That will confirm the downtrend and so bring 2022 lows at $208.88 into focus.

Nvidia (NVDA) chart, daily

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Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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