Nvidia is making huge waves in the global market by dropping their latest solid financial report. For traders and market players who follow this tech giant, this quarter proves that the demand for artificial intelligence and the Blackwell architecture is still totally brutal on the ground.
If we check out Nvidia's daily chart above, the stock price went through a pretty long consolidation phase before finally trying to make a healthy pullback right above the green demand zone area. The stochastic indicator is also starting to slope down at the bottom, giving a signal that selling momentum is cooling off and there is a potential for the price to test its nearest support area before continuing the rally.
Looking closer at the four hour timeframe, the market structure formed a slight double bottom pattern around the support area. That green area at the bottom will be a crucial zone to wait for an entry confirmation for swing traders looking for a buy on dip position with an ideal risk to reward ratio.
This performance spike cannot be separated from the massive contribution of the Data Center division, which totally proved its worth. From the Hyperscale segment alone, revenue hit $37,9B, while the AI Clouds Industrial and Enterprise segment contributed $37,4B. The total revenue from this line shows that AI infrastructure adoption by major global companies is simply unstoppable.
From the profitability side, the company's Gross Margin also proved amazing efficiency with records at 74,9% for GAAP and 75,0% for Non GAAP. This margin increase happened because of lower inventory costs compared to the previous year, making their net profit thicker and fundamentally healthy.
Even though revenue exploded, Nvidia keeps spending big on operational sectors for future technology research and development. Operating Expenses went up to $7,6B GAAP to push innovation without roadblocks in the semiconductor industry.
The direct impact of this business expansion pushed EPS or earnings per share up drastically to the $2,39 level on a GAAP basis. This exponential bottom line growth is the main fuel why institutional investors are still holding this stock for the long term.
Not only good at making profits on paper, Nvidia's Free Cash Flow is also super juicy at $48,6B. Management even returned about $20,0B to shareholders through buybacks and dividends, plus added a new buyback authorization of $80B.
The P&L summary table above wraps up how massive Nvidia's year on year growth is, with an 85% revenue jump and net income skyrocketing by 211%. All main financial metrics are fully green without any weak spots.
For those who want to cross check deeper, this financial reconciliation table gives a clear breakdown between non operating cost adjustments, amortization, and tax impacts on the company's net income accurately.
My opinion
As a final conclusion from a trader's point of view, Nvidia's fundamentals right now are totally top tier and make it one of the most superior assets in the global stock market. But technically, after pumping to hit its highest price, Nvidia will likely pull back first to test the nearest support area around $190 - $195 before being fully ready to continue its mid term bullish trend. For anyone looking to get in, be patient and wait for a healthy correction or watch the demand zone area on the chart to get the best discount price.
This post is original and the data comes from official Nvidia investor relations and SEC filings
Posted Using INLEO
