Nvidia stock price was up in the pre-market session on Thursday as its recent financials continued to provide tailwinds. The stock traded at $134.70, up by 2.4% on the daily chart. The company reported strong revenues that beat analysts’ estimates, but it has become one of the most scrutinized companies, essentially becoming a victim of its own success.
The stock rose by 3.67% on Wednesday after reporting revenues of $39.33 billion, for the quarter ending January 2024, beating the median forecast figure of $39.31 billion. Earnings Per Share (EPS) was at $0.89, exceeding the forecast $0.848, while profit rose by 80% to $22.09 billion.
Nvidia (NASDAQ: NVDA) has given strong guidance for the fiscal first quarter of 2025, forecasting to earn revenues of $43 billion. Hitting that target would translate to 66% year-on-year growth, and augurs well for Nvidia stock price upside. The company attributed its earnings growth to strong AI demand and remains upbeat despite the shakeaup triggered by Chinese AI startup, DeepSeek.
In particular, sales of Blackwell chips were upbeat, with the high-end chips bringing in $11 billion in revenues last quarter. Nvidia expects demand to remain strong, and its focus will be rumping up production to meet deadlines. Cloud service providers were at the forefront of Blackwell demand, accounting for 50% of all sales, and the trend is likely to continue.
On the downside, some of Nvidia’s leading clients like Alphabet, Meta and Google have been developing their own chips, and their success on that front could slow down the demand for Nvidia’s products.
Nvidia Stock Price Prediction
Nvidia stock price pivots at $132.60 and action above that level favours the buyers to stay in control. The first resistance will likely be at $136.00, but a stronger momentum could break above that level and head towards the second hurdle at $138.20
On the other hand, breaking below $132.60 will signal the onset of downward momentum. In that case, NVDA price is likely to go to the first support at $130.70. A stronger momentum will break below that level, invalidating the upside narrative and potentially testing the second support at $128.60.
