Nvidia Share Price Forecast: Stock on the Cusp of a 45% Jump

Nvidia share price continued its comeback this week after the company published mixed financial results for the quarter. The NVDA stock rose by 2% in extended hours and is trading at $160, which was about 50% above the lowest level this year. This rebound gives it a market cap of over $450 billion.

Nvidia growth resuming

Nvidia published mixed quarterly results. Its total revenue dropped by 17% year-on-year to $5.93 billion as demand for computer chips eased. Its data center revenue uncreased by 31% YoY to $3.83 billion even as the company faced significant macro challenges. 

Meanwhile, its automotive revenue rose by 14% to $251 million, helped by the strong performance of its AI automotive solutions. Additional results showed that is gaming revenue cratered by 23% to $1.57 billion as demand for gaming crashed. 

Nvidia expects that its revenue for the fourth quarter will be about $6 billion while its non-GAAP gross margins expected to be about 66%. The firm will spend between $500 million and $550 million in capital expenditures. 

So, is NVDA a good investment? Nvidia’s business is going through challenges. The gaming industry, which is an important one for the company, is struggling after being robust during the pandemic. This sector will remain challenging in the near term 

At the same time, Nvidia and other semiconductor companies are reacting to an export ban by the American government. They have been restricted on the types of chips that they can sell to China, a key market for most of them. 

Still, it has a strong market share in the GPU industry. Its share in the sector rose to about 80% in the second quarter, up from 75% in the previous quarter. The company is also doing well in the data center business.

Nvidia share price forecast

The daily chart shows that the NVDA stock price has made a strong recovery in the past few weeks. It has managed to move above the Ichimoku cloud and the 23.6% Fibonacci Retracement level. The Awesome Oscillator has moved above the neutral level while the stock has moved above the 50-day moving average.

Therefore, the Nvidia stock price will likely continue rising as buyers target the 50% retracement level at $228. This price is about 44% above the current level. A drop below the support at $150 will invalidate the bullish view.