Nvidia Stock Faces Challenges Ahead of Q4 Earnings Report

Nvidia Corp (NVDA) is set to announce its fourth-quarter earnings on Wednesday, with analysts predicting an earnings per share (EPS) of 84 cents alongside revenues of $38.05 billion.

Over the past year, Nvidia stock has risen by 60.11%, although it has seen a decline of 8.44% year-to-date.

In this article, we will analyze Nvidia's stock performance and how it aligns with Wall Street's projections.

Nvidia Stock's Bearish Performance Before Earnings

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Currently, Nvidia stock is trading at $129.88 and is experiencing significant bearish momentum as it approaches its fourth-quarter earnings report. The stock is priced below its five-day, 20-day, and 50-day exponential moving averages, indicating persistent selling pressure and unfavorable short-term trends.

The eight-day simple moving average (SMA) stands at $134.85, the 20-day SMA at $129.93, and the 50-day SMA at $134.03, all suggesting a bearish outlook for Nvidia's future performance.

Despite the bearish signals, some technical indicators suggest a potential for stabilization. The 200-day simple moving average, set at $126.40, serves as a long-term support level. However, the Moving Average Convergence Divergence (MACD) at a negative 0.31 reinforces bearish sentiments. With a Relative Strength Index (RSI) currently at 46.78, the stock remains in neutral territory, yet it has not entered a crucial reversal zone.

Investors are advised to look for a break above significant moving averages to confirm a bullish reversal or further declines that may solidify the existing downtrend.

Positive Analyst Outlook for Nvidia Stock

Ratings & Consensus Estimates: Despite the current bearish momentum, analysts maintain a positive outlook on Nvidia stock. The consensus rating is a Buy, with anticipated price targets averaging around $172.28. Notably, leading analysts from firms such as Rosenblatt, Morgan Stanley, and Tigress Financial have set an optimistic price target of $197.33, suggesting a potential upside of 52.26% from current levels.

NVDA Price Action: Nvidia shares concluded Tuesday's trading session at $126.63, down 2.8%.

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Nvidia, Stock, Earnings