Nvidia Stock Stumbles Ahead of Q4 Earnings: Will It Challenge Bearish Sentiment?

Nvidia Corp (NASDAQ: NVDA) is set to announce its fourth-quarter earnings on Wednesday. Analysts project an earnings per share (EPS) of 84 cents, along with expected revenues of $38.05 billion following the market closure.

Over the past year, Nvidia's stock has risen by 60.11%, yet it has declined by 8.44% year-to-date.

This analysis will explore the current stock performance of Nvidia and how it aligns with Wall Street's expectations.

Nvidia Stock Faces Strong Bearish Momentum Before Q4 Earnings

Chart analysis was conducted using Benzinga Pro.

Currently trading at $129.88, Nvidia's stock is experiencing significant bearish momentum as the earnings report approaches. The stock is situated below its five-day, 20-day, and 50-day exponential moving averages, indicating a persistent selling pressure, as short-term trends are unfavorable.

With an eight-day simple moving average (SMA) recorded at $134.85, a 20-day SMA at $129.93, and a 50-day SMA at $134.03, the outlook remains bearish.

Nonetheless, there are technical indicators suggesting a potential for stabilization. The 200-day simple moving average sits at $126.40, indicating long-term support for the stock. However, with a Moving Average Convergence Divergence (MACD) value of -0.31, the bearish indicators are supported. The Relative Strength Index (RSI) of 46.78 places the stock in neutral territory, but it has not yet reached a significant reversal zone.

Investors should monitor whether the stock can break above critical moving averages as confirmation of a bullish reversal or when further declines may solidify the existing downtrend.

Analysts Project 52% Upside for Nvidia Stock

Ratings & Consensus Estimates: Currently, the consensus rating for Nvidia stock is classified as a Buy, accompanied by a price target averaging $172.28. The latest ratings from firms such as Rosenblatt, Morgan Stanley, and Tigress Financial indicate a potential upside of 52.26%, with an average price target of $197.33.

Nvidia Stock Price Action: As of the conclusion of trading on Tuesday, Nvidia's stock was down 2.8%, closing at $126.63.

Nvidia, Earnings, Bears