Nvidia Stock (NVDA) Rises On Earnings, But Weak Recovery Bearish

Nvidia (NASDAQ: NVDA) rose as high as 5% on Friday morning, after the semiconductor company posted earnings that beat Wall Street expectations.

However, the stock’s market cycles point to a pullback in the first half of the year.

The company reported earnings per share of $0.92 and total revenue of $2.2 billion, which was above the average analyst estimate. For the quarter, management’s sales guidance was $2.2 billion plus or minus 2%, compared to consensus of $2.32 billion.

CEO Jensen Huang said, “This was a turbulent close to what had been a great year. Despite this setback, our fundamental position and the markets we serve are strong.” However, the company a few weeks ago had lowered its guidance, prompting the stock to fall 14%.

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In analyzing the NVDA’s market cycles, we can see that it is still in the rising phase of its current cycle.

However, it has retraced only 23.6% of the decline from its previous cycle, which indicates a weak recovery. We expect a test of its recent low around $122 by May.

Nvidia (NVDA) Stock Weekly Chart

nvidia stock nvda investing forecast analysis research bearish lower february march

For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.