Nvidia Stock Faces Headwinds as Q4 Earnings Approach: Will It Challenge the Bears?

Nvidia Corp (NASDAQ: NVDA) is scheduled to report its fourth-quarter earnings on Wednesday, with Wall Street analysts predicting earnings per share (EPS) of 84 cents and expected revenues of $38.05 billion.

The stock has seen an impressive rise of 60.11% over the past year, but it has declined by 8.44% year-to-date.

In this article, we will analyze Nvidia's current stock situation and how it aligns with Wall Street forecasts.

Nvidia Stock Experiences Bearish Momentum Ahead of Earnings

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As of now, Nvidia stock is trading at $129.88, facing considerable bearish momentum as it approaches the fourth-quarter earnings report. Currently, the stock is below its five-day, 20-day, and 50-day exponential moving averages, indicating ongoing selling pressure and unfavorable short-term trends.

The eight-day simple moving average (SMA) is recorded at $134.85, the 20-day SMA at $129.93, and the 50-day SMA at $134.03, all of which support a bearish outlook.

Nevertheless, some technical signals indicate possible stabilization. Nvidia's long-term support, marked by the 200-day simple moving average at $126.40, contrasts with the bearish sentiment reflected in its Moving Average Convergence Divergence (MACD) indicator, which stands at a negative 0.31. Additionally, a Relative Strength Index (RSI) of 46.78 shows that the stock is trading in neutral territory without reaching critical reversal levels.

Investors should keep an eye out for indications that the stock could break above important moving averages for a potential bullish reversal, or else brace for further declines that may continue the current downtrend.

Nvidia Analysts Forecast a 52% Upside Potential

Ratings & Consensus Estimates: Currently, the consensus rating among analysts for Nvidia stock is a Buy. The average price target is set at $172.28. Analysts from firms such as Rosenblatt, Morgan Stanley, and Tigress Financial suggest a significant upside potential of 52.26%, with an average price target of $197.33.

Current Price Action: On Tuesday, Nvidia stock closed at $126.63, reflecting a decrease of 2.8%.

Takeaway

Overall, Nvidia is navigating through turbulent market conditions ahead of its earnings announcement. While technical indicators show mixed signals, the broader analyst consensus suggests optimism for the stock’s future performance.

Nvidia, stocks, earnings