Nvidia (NASDAQ: NVDA) stock price has been making waves with its announcement of the development of AI chips. Since the start of 2023, the stock has surged almost 220%. The stock is changing hands at $459.67 at press time, less than 24hrs before the release of its Q2 earnings report.
On Monday, Nvidia shares went up by 8.7%, in a bullish start to its earnings week. This suggested that investors expected a strong earnings report for the second quarter. Previously, the tech giant’s stock price reached an all-time high after presenting a strong earnings report for the Q1 of 2023. Investors are now expecting a similar outcome ahead after the firms Q2 resutls.
HSBC Expects More Upside Potential For Nvidia Stock
After a bullish price action on Monday, Nvidia stock price surged to a new all-time high on Tuesday. However, the stock failed to gain strength above its July high and had a pullback from $481 level. According to the latest Nvidia news, HSBC has set a $600 price target, a 30% increase from the previous target, for the chip maker.
The bank expects another significant bounce as the market has yet to realize the full potential of AI development. Furthermore, higher GPU selling prices and improved gross margins will also contribute to beating the 2024 earnings forecast for the chipmaker.
Investors are on their toes as the Q2 earnings report for Nvidia is to be released tomorrow. The increased optimism can be felt all around the market as 15 brokerage firms have raised their price targets ahead of the earnings release. Analysts expect $11.17 billion in revenue and earnings per share of $2.07.
Nvidia Stock Price Forecast
The highly anticipated earnings report for NASDAQ: NVDA is approaching. Currently, the price is 4.81% below the all-time high of $481. The sentiment around the chipmaker appears to be extremely bullish. But the actual results of earnings themselves will dictate the direction of the stock price.
For Nvidia stock price prediction to remain bullish, the shares need to gain strength above the $481 level. A strong sell-off after the earnings would make the outlook very bearish. In this case, the price might dip below the $400 level. However, the price is likely to find some support around the $405 mark as well.
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