Chipmaker Nvidia (NAS100:NVDA) has its latest earnings released next week after a recent rebound in the stock.
The rebound in NVDA stock saw an important clearing of the downtrend resistance at around $115. The earnings will be a test for the $143.37 level with the all-time highs ahead at $152.84.
Nvidia releases earnings in just under a week on May 28 and the stock will be the hottest topic in markets next week. The stock has recovered from an April slump and is now trying to push back to the previous highs.
The coming earnings could be a significant event that creates the next medium-term trend for the company.
One of the first things to consider is a soothing of geopolitical worries on trade. The US and China have pulled back from its trade war and that can create an easier climate. Nvidia has also been moving to invest in manufacturing plants in the United States which can get the company on good terms with the current President and lessen its exposure to overseas issues. A recent trade visit between President Trump and Saudi Arabia has also led to partnership plans with Nvidia and the Middle Eastern state.
The consensus estimates earnings of $0.89 per share, would be a 45% increase from the previous year, while revenues are projected to rise by 65% year-over-year to $43 billion. The growth driver has been higher demand for the company’s GPU chips utilized in generative AI applications. In the prior quarter, Nvidia was very bullish on its early sales of the new Blackwell AI platform. That could be a factor in an earnings surprise this quarter.
However, investors will also focus on Nvidia’s future projections, especially given the growing uncertainty regarding trade policies and tariffs. The Trump administration has been said to be considering tighter regulations on AI chip exports through newly introduced AI diffusion rules. That could be another cap to Nvidia’s potential sales.
If the stock market remains positive, NVDA could creep toward the first resistance line noted ahead of earnings and set up a retest of the highs with a positive earnings surprise.
