Nvidia Corp. (NVDA Stock) - Can it Remain Bullish Around 2023?

Nvidia Corporation (NASDAQ: NVDA) is the world’s leading microchip manufacturer, controlling 78% of the GPU market, and rallied almost 102% in 2023. Founded in 1993 and headquartered in Santa Clara, California, the company is best known for contributing to graphics and gaming. NVDA stock, at press time trading at $268.80, up by 4.06%, is still far from its all-time high of $333. Will it surpass the point?

Nvidia Corp. The Microchip Leader Trying to Lead

2023 has been a relatively good year for stock investors, and NVDA stock performed well. But in 2022, the company faced macroeconomic challenges causing its revenue to drop in Q4 by 21% to $6.05 Billion. The reason cited was weakness in the gaming segment due to a limited spending capacity.

Nvidia’s gaming chips are also used in cryptocurrency mining, but as the industry suffered greatly due to the crypto winter, there was a surplus of GPUs in the market. But now, as the mining industry is gaining traction, sales might increase, thus fuelling the rally.

Statista suggested that the Artificial Intelligence (AI) industry could swell from $100 Billion to $20 Trillion by 2030. Nvidia can profit from this as it has a near monopoly on the GPU markets advanced enough for machine learning. Nearly 10,000 Nvidia A100 chips were used to train OpenAI’s ChatGPT model.

Institutional investors at Nvidia rejoiced as the company added $23 Billion in its market cap last week. Also, the one-year returns to shareholders are currently 54%.

Nvidia Trading Analysts

At press time, Nvidia (NASDAQ: NVDA) was trading at $268.80 with a jump of 4.06%; previous close and open were at $275.62 and $278.26, respectively. With an average volume of 47.20 Million shares, the company’s market cap is $708.396 Billion. In 52 weeks, the price hiked by 69.20%. Analysts have placed the price target at $268.79, with a downside of 6.3%.

Source: MarketBeat; NVDA

The year-on-year change concerning January 2023 in revenue was a drop of 20.83% from $6.05 Billion, now at $26.97 Billion, revenue per share was $10.85, and the quarterly revenue growth dropped by 20.80%. Operating expenses hiked by 27.10% to 2.58 Billion, net income fell by 52.91% to $1.41 Billion, and net profit margin stumbled by 40.52% to $23.37.

Earnings per share (EPS) dropped 33.33% to $0.88, now at $1.77, and EBITDA suffered by 48.70% to $1.68 Billion, now at $7.12 Billion. Return on asset and equity gained by 8.17% and 17.93%, respectively.

Shareholders’ equity amounts to $22.1 Billion, with a debt of $11.0 Billion; this makes debt to equity ratio of 49.6%. Total assets and liabilities were reported to be $41.2 Billion and $19.1 Billion, respectively.

Nvidia Corporation (NASDAQ: NVDA) – Candle Exploration

A clear upward-sloping trend line and EMA indicate a bullish momentum, and the increased volume in April 2023 supports the claim. However, the current price is close to the crucial resistance at $289.91; if NVDA’s stock price crosses that, it could go into the supply zone.

Source: TradingView; NVDA

However, as the earnings are approaching, it could significantly impact the price. It will find immediate support if the price bounces back from crucial resistance and crosses the trend line. Prices can consolidate between them for a while, and if the earnings report comes out negative, it might move toward the demand zone.

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing