NVIDIA Corporation (NASDAQ:NVDA) Missed Estimates

NVIDIA Corporation (NASDAQ:NVDA) Missed Estimates

NVIDIA Corporation (NASDAQ:NVDA) Missed Estimates

  • Nvidia Corp’s quarterly revenue in its widely watched data center and automotive businesses missed estimates, dragging down the chipmaker’s shares that have nearly tripled in value over the past 12 months.
  • Nvidia shares were down 6.6 percent at $153.87 in extended trading on Thursday. Shares have risen 181 percent over the past year, the strongest performance across the benchmark S&P 500 index.
  • Nvidia came to prominence in the gaming industry for designing graphics-processing chips, but in recent years has been expanding into newer technologies including cloud computing, artificial intelligence, and self-driving cars.

Nvidia Corporation focuses on personal computer (PC) graphics, graphics processing unit (GPU) and also on artificial intelligence (AI). The Company’s operates through two segments: GPU and Tegra Processor. The Company’s GPU product brands are aimed at specialized markets, including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. The Company’s Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core central processing units (CPUs) to drive supercomputing for mobile gaming and entertainment devices, as well as autonomous robots, drones and cars. The Company’s processor has created platforms that address four markets: Gaming, Professional Visualization, Datacenter, and Automotive. The Company’s offerings include NVIDIA DGX AI supercomputer, the NVIDIA DRIVE AI car computing platform and the GeForce NOW cloud gaming service.

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

The projected upper bound is: 168.22.

The projected lower bound is: 144.17.

The projected closing price is: 156.19.

NVIDIA CORP closed down -8.780 at 155.960. Volume was 85% above average (neutral) and Bollinger Bands were 49% narrower than normal.

Open          High            Low             Close          Volume
157.140      159.000      152.910      155.960      37,429,860

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period         50-period        200-period
Close:                       166.05              157.38              117.05
Volatility:                48                     49                      63
Volume:                  18,324,566      22,601,678      18,562,432

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 down today (bearish) 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 33.2% above its 200-period moving average and is in an upward 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 bullish on NVDA.O and have had this outlook for the last 20 periods.

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 27.8064. This is not an overbought or oversold reading. The last signal was a sell 1 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 42.49. 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 34 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 -203.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 1 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 1 period(s) ago.

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John Heffernan

John Heffernan is an Analyst at HEFFX. John is a BSc in Economics with Honors from the University of Buckingham, and is a contributor on equities at Live Trading News.

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