NVIDIA Stock Forecast Ahead of AMD, Google, Amazon Earnings

NVIDIA stock price remained in a tight range on Monday ahead of a relatively busy week in which top companies in the technology industry release their financial results. It traded at $191 on Monday and has formed highly bearish chart patterns, suggesting further downside in the near term.

NVIDIA Stock to React to AMD Earnings

NVIDIA, the world’s largest semiconductor company, will be in the spotlight this week as its biggest competitor releases its financial results.

AMD makes some of the fastest-growing AI chips, including Instinct, which are used by some of the biggest data center operators like IREN and Microsoft.

Data compiled by Yahoo Finance indicates that its business continued to do well in the last quarter. The average estimate is that its revenue rose by 28% to $9.67 billion, bringing its annual revenue to $34 billion.

Its annual revenue is expected to grow by 32% to over $45 billion, with most of that coming from the data center business.

AMD’s profits will also continue rising. Analysts expect the annual earnings-per-share (EPS) to be $3.98, up from $3.31 in 2024. It will then move to $6.6 this year.

Strong AMD results will be a sign that the AI industry is doing well, which will benefit NVIDIA. These results will be notable, as other recent results from Taiwan Semiconductor (TSMC), which makes most of NVIDIA’s chips, showed that demand remains elevated.

Amazon and Google Earnings Ahead

The other key earnings to watch will be by Amazon and Alphabet, which are some of the biggest clients.

These results will indicate whether the two companies plan to continue spending on their data centers.

In its earnings last week, Meta Platforms pledged to continue spending this year, which pushed its stock up by over 10%.

Microsoft, however, reported strong topline results, but weak cloud computing revenue growth, leading to a $300 billion stock wipeout. A continued weakness may prompt it to slow spending, which would hurt NVIDIA since it is its biggest client.

Meanwhile, Oracle, a top player in the technology industry, is raising $50 billion this year to accelerate its data center spending. Most of these funds will go towards buying NVIDIA chips.

OpenAI is also in the process of raising billions of dollars from companies like Microsoft, NVIDIA, Amazon, and SoftBank as it continues to boost its capacity. Altogether, big-tech companies plan to spend over $500 billion this year.

All these events suggest NVIDIA will likely report strong financial results. The most recent data show that its fourth-quarter revenue will be $65.5 billion, up 66% YoY. This revenue will bring its annual figure to $213 billion, followed by $323 billion this year.

This growth trajectory explains why most analysts are optimistic that the company’s stock will continue doing well in the long term. For example, data compiled by MarketBeat shows that no Wall Street analyst has a sell rating on the company. The average stock target is $263, well above the current $191.

NVDA Stock Price Technical Analysis

The daily timeframe chart shows that the NVDA stock price has formed a highly bearish chart pattern, which could lead to a short-term reversal.

It has been forming a head-and-shoulders pattern, consisting of a head, two shoulders, and a neckline. In this case, the neckline connects the lowest swings since September last year.

The stock has also formed a double-top pattern at $194 and a neckline at $177.

Therefore, these patterns mean that the stock will likely have a strong bearish breakdown in the coming days, potentially to the key support level at $150.

On the other hand, a move above the Major S&R pivot point at $200 will invalidate the bearish outlook and signal more gains, potentially to the all-time high of $212.