The 200-day will likely have edged up toward $200 also. $230 to $200 becomes a strong support zone in that event. There is a huge volume vacuum once through $295, meaning an acceleration in losses would be probable. The daily chart shows us that this $230 level might not be so far away as thought. The last price explosion point is $230.23. The weekly chart shows us where Nvidia stock might retrace to if a slowdown does occur. High P/Es need high growth to justify them, so any slowdown in growth will be punished. Nvidia's P/E is trading close to the top of its historical range. Even compared to peers, this one looks a bit high. Intel has a P/E of 10, AMD 47, Qualcomm 23. Nvidia has a price/earnings (P/E) ratio of over 90 when the Nasdaq has an average P/E of about 29. Now all this high growth comes at a cost, and that cost is a very high valuation. Net income has nearly quadrupled since July 2020.
Revenue has been growing at over 60% yearly, while EPS growth is running at nearly 45% annually. Investors will look for growth to continue and the speed of revenue growth to be maintained. Revenue and profits have been growing strongly as the table from Refinitiv shows. Semiconductor stocks have been repeatedly strong throughout 2021. Semiconductors have been constantly in the news this year as global shortages hit manufacturers. The last earnings report on August 18 saw a spike in Nvidia's share price by 4%, while a quarter earlier earnings caused a 1% loss, which was followed by a 5% gain the next session. The company has beaten earnings on the bottom line going back for the last eight quarters, according to data from Refinitiv. Revenue is expected to reach $6.83 billion versus $4.73 billion a year ago. Nvidia is expected to report earnings per share (EPS) of $1.11 that compares to a year ago EPS of $0.73. Nvidia will likely face more questions when it reports earnings after the close on Wednesday. ARM is a UK chip manufacturer, and the UK is concerned over the strategic importance of the deal. The UK Competition & Market Authority (CMA) had earlier raised concerns about the deal. The UK decided to do an in-depth investigation into Nvidia's proposed purchase of ARM. NVDA stock chart 15-minute Nvidia (NVDA) stock news
Nvidia reports earnings after the close today. Investors also likely sat out taking too many bets ahead of earnings from Nvidia. Nvidia (NVDA) stock had a fairly quiet session on Tuesday as investors digested news of the UK regulator taking a closer look at the proposed $50 billion merger with ARM.
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