Summary:
- NVIDIA Corporation NVDA rose as much as 5 percent 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 stock had pulled back and was only up about 2 percent by the mid-afternoon session.
Nvidia Stock Chart With Weekly Bars
Nvidia reported earnings per share of $0.80 and total revenue of $2.21 billion, which was above the average analyst estimate. For the quarter, management’s sales guidance was $2.2 billion 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.” Analysts notes that the company had lowered its guidance a few weeks ago, prompting the stock to fall 14 percent.
In analyzing the Nvidia’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 percent of the decline from its previous cycle, which indicates a weak recovery. We expect a test of its recent low around $122 by May.
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