I’m not seeing a lot about NVIDIA so here’s my DD. It reports earnings on 11/18 after market close. Expectations are high. Revenues are expected to be around 4.4 billion, a 46% increase year over year. EPS are expected to be $2.57, an increase of 44% year over year. NVDA has beat the last 4 earnings by an average of 11.5%.
They are expected to have benefited from sales growth in graphic chips due to the pandemic and more people working from home, but there are concerns that supply chain disruptions could have a negative impact. Last month,they announced that Minecraft, Black OPS Cold War, and many other huge games would be using their RTX ray tracing technology.
They have also partnered with every major cloud-based solution platform to optimize performance of these services through their GPU hardware.
There have been 35 upward revisions from analysts in the last 3 months leading to this earnings report, and 0 downward revisions.
As far as technicals go, it is undoubtedly trading at a much higher multiple that it probably should be, but we all know the entire market is extremely inflated. It recently underwent a 14% sell off from its high of $589, and is currently sitting at $531.88. It bounced nearly perfectly off its 50 day EMA on Friday, the Stoch RSI on the daily crossed bullish, and the MACD on the hourly is close to crossing bullish.
My position, entered Friday, is 12/4 545c. The IV is only 54%. I think NVDA is set up for a run into Thursday, and could see it working back up to its all time high. I think this could be another example of a very good earnings report that leads to a sell off after reporting because of the expectations are just insanely high. I’m going to hopefully ride the wave into Thursday, then make the call on whether to hold through the report or not. BOL
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.