NVIDIA share price was up by 6.6 percent in the premarket session on Thursday, to cross the psychological $1,000 mark and trade at $1,022.77, as investors positioned themselves following the earnings release. NVIDIA reported revenue for the first quarter 2025 (period ended April 28, 2024) of $26.0 billion, representing a jump of 18% from the previous quarter, and beating the consensus forecast figure of $24.65. That translated to a 628 percent jump in revenue over a similar period in 2023. It also reported Net Income of $14.88 billion, up from $2.08 billion in last year’s first quarter. Earnings per share came in at $6.12, shattering analysts’ forecast of $5.60.
Why is NVIDIA soaring?
The company has established itself as the bellwether of the AI processor industry, and many investors expect another set of impressive earnings figures. However, the upside to the NVIDIA share price could be limited by the Fed’s inflation sentiments emanating from Wednesday’s release of the April 30-May 1 FOMC minutes.
AI is billed as the next big thing in industrial revolution, with companies and governments rushing to set up AI-driven data centres, cloud infrastructure, production plants, healthcare etc. Also, generative AI has proven popular with retail users, and NVIDIA’s Blackwell platform is miles ahead of the competition on that front. This has been the basis for NVIDIA’s meteoric rise since 2023, with the company proving skeptics wrong each time they stated that the stock price has peaked.
With NVDA crossing the psychological $1,000 mark, there is much talk that the share price has peaked, and that is likely to gather more steam, especially in a market struggling with inflation. With that in mind, NVIDIA also announced on Wednesday that it will institute a 10-to-1 share split from June 7, in a move geared towards making the share price more affordable. However, that will not affect the company’s valuation.
Despite the inflation jitters, the AI chip market is likely to grow in the medium term and long term. While the full potential of AI is still in “experimental” stages the fact that the next generation of laptops are already being built with AI optimization in mind denotes a ready market for NVIDIA. Microsoft has already begun manufacturing these pieces, and has begun rebranding its AI PCs as Copilot Plus PCs.
Technical analysis
The momentum on NVIDIA stock price signals that the buyers are in control, and calls for the upside. The upward momentum will likely continue if the share price stays above $1,000.00, which will serve as the pivot. Above that mark, the first resistance is likely to come at $1,022.62, but an extended control by the buyers will break the resistance and potentially push the price to $1,040.33.
On the other hand, a move below $1,000.00 will signal control by the sellers, with the first support likely to come at $970.59. A break of that support could happen if the sellers extend their control. Furthermore, such a move will invalidate the upside view and likely build the momentum to push the price further down to test $949.86.
