NVIDIA Stock Forecast Ahead of Big Tech Earnings This Week

Key Insights

• The NVIDIA stock price has soared and is nearing the all-time high.
• The stock has formed a bullish flag pattern on the three-day chart.
• The biggest clients, including Microsoft and Amazon will publish their earnings this week.

NVIDIA stock price has done well in April, and this week will be a crucial one. It ended last week at $208, its highest point since October last year, and a few points below the all-time high. So, will the stock continue soaring ahead of the big-tech earnings?

NVIDIA Stock in Focus Ahead of Big Tech Earnings

The NVDA stock price jumped sharply last week as American shares soared. This rally accelerated after Iran reported that its foreign minister, Abbas Aragchi, would travel to Pakistan and possibly meet with a U.S. team. This meeting will not happen after President Donald Trump canceled a trip by his negotiating team.

The stock also jumped after strong Intel earnings, pushing it to a record high. This was an important earnings report as NVIDIA invested billions of dollars in Intel last year. NVIDIA has also invested in several large companies like CoreWeave, Nebius, and Lumentum.

NVIDIA’s stock price will react to the upcoming earnings of some of the United States’ biggest companies, many of which are also its biggest customers.

These results will have an impact on the company as signs that they will boost their AI spending will be bullish for NVIDIA stock. On the other hand, signs that companies are paring back some of their investments will signal a retreat.

Google, Microsoft, Amazon, and Meta Platforms will publish their results on Wednesday. This is notable as these companies are valued at nearly $12 trillion. Apple will next release its results on Thursday.

While Apple is not a major NVIDIA client, the other four are major clients, accounting for over 50% of its total revenue. Analysts estimate that Microsoft accounts for 20% of its annual revenue, helped by its strong data center spending. These companies estimated that they would spend over $650 billion in capital spending this year.

Top companies like Microsoft and Amazon are between a rock and a hard place. While investors want to see them gain market share in the data center industry, they are also concerned about the return on investment. For example, Microsoft’s shares dropped after its last earnings report, as it boosted capital expenditure.

Recent related earnings have sent strong signals about the company’s business. For example, Taiwan Semiconductor (TSMC) reported strong results, suggesting stronger demand for AI chips.

NVIDIA Trading at a Rare Discount

Key data shows that NVIDIA stock is trading at a rare discount despite the ongoing AI spending boom. This discount came as the company faces substantial competition.

For example, Google has said it will use Intel’s Xeon chips, which are alternatives to NVIDIA’s chips. Also, Meta Platforms announced that it would use Graviton chips made by Amazon.

All the large companies, including Google, Microsoft, Amazon, and Meta Platforms are all working on their ASIC chips.

Data shows that the company trades at a forward price-to-earnings (P/E) ratio of 24, which is well below its five-year average of 44. It has one of the strongest rule-of-50 multiples.

NVDA Stock Price Technical Analysis

The three-day chart shows that the NVDA stock price has been bullish recently. It has jumped above the upper side of the descending channel, which is part of the bullish flag pattern, a common continuation sign in technical analysis.

The stock has jumped above all moving averages, while the Relative Strength Index (RSI) has jumped to the neutral point of 50. Also, the stock has moved above the Supertrend indicator.

Therefore, the stock will likely keep rising in the near term, potentially to the psychological level at $250. On the flip side, a move below the key support level at $180 will invalidate the bullish outlook.

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