NVIDIA (NVDA) Earnings Release Analysis 23 Aug 2023 Post Market

Nvidia stocks skyrocket after it last reported forecast record revenue which is much higher than any of what was being announced before.

There are some signs showing that Nvidia might be facing challenges in meeting chip demand, but would this affect Nvidia's results and forecast. Nvidia could still sell later after the production catch up.

I am looking forward to see what the latest round of earnings from Nvidia would mean for Nvidia’s standings in investors looking to invest in the AI boom. This will also be interesting to see if Nvidia can deliver on the high and lofty expectations they set.

Something significant of Nvidia earnings would be this shall be an indication of the overall tech demand especially in times where companies are tightening IT budgets because of economic slowdown worries.

Even though there is some expectation that Nvidia can go higher but we need to remember that when prices goes up too high, the descent could be as low.

Nvidia chip dominance might be affected as there are many incumbents coming with more effective and cost saving. Nvidia might gain some success in the gaming segment with the new Ada Lovelace graphics-processing unit ecosystem.

In this article I will be looking at Nvidia fundamental data and also use technical analysis to look at how Nvidia has been trading.

With the economic slowness in China and U.S. economy even though is strong from the retail consumer. Nvidia sales to data center might not be increasing too much.

Though data center try to integrate generative AI and large language models, but there is a trend of IT budgets cut and delay in some projects that could wait amidst economic uncertainty.

Nvidia results and guidance might not hit the high end of expectations, but I still see a significant growth in their EPS and revenues.

There have been a few big orders of GPU in the last 3 months, how Nvidia manage these demands will be important as this translate to revenues.

Though the sales can be fulfilled later but tendency of projects getting delayed is higher now. This would mean money to be collected might be for later (upon project completion).

I am expecting a higher revenue that previous reported. This also mean that their operating expenses might go up.

I will be looking for more financing cash flow than the previous quarter. If there is a significant increase of revenues, there would be more free cash flow being reported.

Nvidia reported more than 200% YTD growth and with the expectations given by the company. If Nvidia can meet and exceed the expectations in 2023, we would be seeing a much higher growth rate from Nvidia.

I foresee that Nvidia could reach for a new high level maybe in the next quarter.

As we can see there is an informative sales of shares worth $191.6M by the corporate insiders but we should also take note that in June, there are corporate insiders loading up shares.

I foresee we could see more sales of shares in the coming months once Nvidia reach another new height of its share price.

Hedge funds has decreased their holdings by 1.2M shares in the last quarter. The latest news reported that Ark Invest sold $1.02 million worth ofNvidiashares on Tuesday (22 August), based on Tuesday’s closing price of $456.68.

The shares sales was was made through the Next Generation ETF, various developments affecting Nvidia’s stock performance is why the decision to sell was made.

Investors are very positive about Nvidia’s outlook and the portfolios have increased by 0.5% in the last 7 days. In the last 30 days, portfolio increased by 5.0%.

I would think the percentage in the last 7 days would increase more once Nvidia could present a better outlook and beat the expectations.

Nvidia is in a bull trend but there is something we need to take note of when price tend to move below SMA50.

That will be an indication of trend change. Recently Nvidia has manage to move away from SMA50, but I will be looking forward to what Nvidia outlook and earnings will show. We might revisit the SMA again.

RSI is seen to be moving towards Overbought region. On 22 August we saw that Nvidia has drop more than 2% which could signal potential selling might happen.

It would be better to monitor how Nvidia would be trading on 23 August 2023, the key point to look out is whether there will be any sell-off happening.

ADX is between 20 and 40 which indicate a developing trend. But +DI is too close to -DI which suggest that this developing trend might be not strong.

Though Nvidia would be moving in a bullish upside but I do not expect a huge price gap up after the upcoming earnings release. This will be different from the previous quarter reported in April 2023.

I think Nvidia was in a brief downside since beginning of August, but it has a bullish reversal recently, this would mean that Nvidia has the potential to continue its bullish upwards move.

But I do not foresee that the bullish upwards move will be strong enough to give us a Gap Up.

Based on what I observed, Nvidia fundamental looks good because of a fantastic last quarter reporting, but we need to be aware that it need to be sustainable.

Nvidia has set out a high expectations so it is something investors would be looking out for. If we look at how its share price have been trading from technical analysis, there is no potential sign that Nvidia would present us with a huge Gap Up in price prior or after its earnings announcement.

I will be monitoring the price action and look out for an opportunity to load some more shares when the price is right. I would say the price now is a bit on the high side.

Appreciate if you could share your thoughts in the comment section whether you think Nvidia would beat the expectations they set and surprise us with a new high and a new valuation?

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.