Nvidia stock price forecast ahead of Q2 earnings.

Nvidia (LON: NVDA) stock price will be in the spotlight this week as the company prepares for its second-quarter earnings scheduled for Wednesday. The stock dropped to $178, which was slightly below this month’s high of $192. The price is about 26% above the lowest level this year.

Nvidia earnings preview

Nvidia is a leading semiconductor company valued at over $446 billion. The company designs some of the best graphic processing units (GPUs) that are widely used to handle the most challenging tasks in computing. 

Nvidia has become a top player in technology industries like gaming, artificial intelligence, cryptocurrency mining, and autonomous driving.

Like AMD, Nvidia business boomed during the pandemic as demand for gaming jumped. In the same period, cryptocurrency prices soared, leading to more demand for high-powered mining equipment. The supply shortages helped boost the company’s prices.

The Nvidia stock price lost its momentum this year as the situation reversed. Cryptocurrency prices slipped, leading to weak demand for mining equipment. People returned to the offices, lowering the demand for computers and gaming.

The next key catalyst for the NVDA stock price will be its earnings which are scheduled for Wednesday. Analysts have relatively modest expectations. They expect that the firm’s revenue dipped from $8.29 billion in Q1 to $6.70 billion in Q2. This revenue will be slightly above the $6.5 billion it made in the same quarter in 2021. Still, Nvidia has a good track record of beating analysts’ estimates.

Nvidia share price will react to the performance of its key sub-divisions like data centers and gaming. Expectations are that its crypto mining division continued struggling as the prices of most coins dropped. The stock will also react to the company’s margins.

Nvidia stock price forecast

The four-hour chart shows that the Nvidia share price has been crawling back in the past few days. This performance faded this month as it formed a small double-top pattern at $192. In price action analysis, this pattern is usually a bearish sign.

The stock moved slightly below the 23.6% Fibonacci Retracement level while the Relative Strength Index (RSI) moved below the neutral level of 50. 

Therefore, because of the double-top pattern, there is a likelihood that the stock will drop after earnings. If this happens, the next key support to watch will be at $155. This is an important level since it is the right shoulder of the inverted head and shoulders pattern.

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