Stocks Boosted by NVIDIA Results
Risk assets are climbing today as markets enjoy fresh upside impetus on the back of a bumper set of results from chipmaker NVIDIA. The company topped both earnings and revenues forecasts yesterday, which were already set well above the prior quarter’s results. On the numbers front, NVIDIA posted Q4 EPS of $5.16, above the $4.593 the market was looking for. Similarly, revenues were seen at $22.103 billion vs $20.395 billion.
Nasdaq In the Green
With the US Dollar softening today and the tech sector pushing higher, the NASDAQ looks set to enjoy a return to the upside following the recent correction lower. Looking ahead today, traders will receive the latest set of US PMI figures. However, unless we see a strong upside beat, these figures shouldn’t derail the current rally in stocks.
Bullish Outlook
Goldman Sachs yesterday called NVIDIA ‘the most important stock in the world right now’ with others referring to it as a generational leader. The company’s position at the forefront of the AI drive has garnered plenty of attention for the stock and with results continuing to surprise to the upside, the outlook remains firmly bullish for now. Indeed, for the current quarter, the company offered guidance which was around three-times higher than that of Wall Street.
Technical Views
Nasdaq
The correction lower from highs around the 18000 level has seen the market testing below the bull channel. Price has found support for now, however, keeping focus on further upside. However, momentum studies are bearish here, highlighting risks of a deeper move lower. 16982 – 16635 will be the key support area bulls need to defend to avoid risks of a trend reversal.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.