NVIDIA Corporation (NASDAQ:NVDA) managed to defy the odds during its fiscal second quarter with earnings and revenue that came in higher than expected

NVIDIA Corporation (NASDAQ:NVDA) managed to defy the odds during its fiscal second quarter with earnings and revenue that came in higher than expected

NVIDIA Corporation (NASDAQ:NVDA) managed to defy the odds during its fiscal second quarter with earnings and revenue that came in higher than expected

Still reeling from the fallout of the cryptocurrency boom, Nvidia Corporation (NASDAQ: NVDA) managed to defy the odds during its fiscal second quarter with earnings and revenue that came in higher than expected. The chipmaker’s stock rallied sharply on Friday, recouping all of the prior losses for the month of August.

Q2 EARNINGS SUMMARY

  • Earnings: $1.24 per share, excluding certain items
  • Revenue: $2.58 billion

Nvidia generated $2.58 billion in revenue during its fiscal second quarter, which ended July 28. That was 17% lower than a year ago but still higher than the median estimate of $2.54 billion, the company reported Thursday evening.

Excluding certain items, per-share earnings came in at $1.24, higher than the $1.15 expected.

The company’s automotive segment, which produces the Tegra processor, generated a record $209 million in revenues last quarter. That represents a gain of 30% year-over-year.

By comparison, Nvidia’s professional visualization unit grew just 4% annually. Gaming, data centre, and OEM services all fell on a year-over-year basis.

The decline in gaming was the most pronounced: The segment generated 27% less revenue compared with last year. Still, it accounts for just over half of company-wide sales at $1.31 billion.

Nvidia’s management team pointed to improvements for its fiscal third quarter, but guidance was lower than expected. The company expects to generate $2.90 billion in revenues in Q3 compared with analysts’ expectations for $2.97 billion.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 171.60.

The projected lower bound is: 148.15.

The projected closing price is: 159.88.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 44.1574. This is not an overbought or oversold reading. The last signal was a buy 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 49.84. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 16 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 18. This is not a topping or bottoming area. The last signal was a buy 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 12 period(s) ago.

Rex Takasugi – TD Profile

NVIDIA CORP closed up 10.790 at 159.560. Volume was 133% above average (neutral) and Bollinger Bands were 38% wider than normal.

Open     High      Low     Close     Volume___
159.350 161.540 156.880 159.560 25,384,628
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 153.54 159.77 162.09
Volatility: 71 47 66
Volume: 11,508,866 10,032,478 14,160,174

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

NVIDIA CORP gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NVIDIA CORP is currently 1.6% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of NVDA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on NVDA.O and have had this outlook for the last 9 periods.

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