- Nvidia stock price rallied 33% on the previous month after the craze of ChatGPT hit the market
- Open AI ChatGPT used 10,000 Nvidia GPUs to train the model
- NASDAQ: NVDA Q4 earning estimates stood at $0.81 and revenue estimate at $6.02B
Nvidia Corporation (NASDAQ: NVDA) stock price is trading with mild bearish cues and bears are trying to pull the prices downward ahead of its Q4 earnings. However the overall market sentiment is also turning negative which might directly impact the NVDA stock prices for the short period of time. In the previous session NASDAQ: NVDA stock price closed at $206.55 with the intraday loss of 3.43% and market cap stood at $514.723B
Will Nvidia stock price slip below $200 after earnings?
Nvidia Corporation (NASDAQ: NVDA) stock price has turned bullish and rising upward by forming fresh higher high swings after the recent craze of Open AI ChatGPT hit the market.
In the beginning of January, NVDA stock prices took support at $140 and after a little bit of consolidation at lower level bulls managed to push the price above the 50 day EMA which has triggered the positive sentiment and prices rallied 63% approx in the short period of time. Meanwhile, the stock has also displayed the golden EMA crossover which shows that the positional trend has reversed in the direction of bulls and long term investors are expecting outperformance in coming months but recently NVDA rally took halt at $230.00 and facing strong rejection from the higher level ahead of its Q4 earnings indicating that bears are trying their best to disturb the market sentiment and reverse the prices in a downward direction.
The technical indicators of the NVDA stock are turning mild bearish and price action is also showing the initial signs of short term correction which increases the probability that prices might react negatively after the release of Q4 earnings and prices might retest $188.00 level or will enter into consolidation before deciding the further direction.
According to the data in Yahoo Finance, Nvidia Corporation Q4 Earnings average estimates stood at $0.81 and the revenue estimate at $6.02B. Many analysts believe that NVDA might post low earnings and may see substantial decrease in the revenue growth as compared to previous quarters which will create a matter of concern for the long term investors.
Summary
Nvidia Corporation (NASDAQ: NVDA) stock price has rallied almost 33% in the previous month due to the craze of ChatGPT but if we look into the company financials then the slowdown in revenue and sales is visible which is creating a matter of concern for the long term investors. The technical analysis suggests that prices are lacking the momentum on the higher side and might retest the $188 level or may enter into consolidation before deciding the further direction.
Technical levels
Resistance levels : $230.00 and $252.00
Support levels : $188.00 and $160.00
Disclaimer
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Source: https://www.thecoinrepublic.com/2023/02/22/nvda-stock-prepares-q4-earnings-short-term-correction-possible/