NVIDIA Stock Faces Resistance as Analysts Predict Earnings-Driven Rebound

Key Insights

• NVIDIA stock price has hit a major resistance at the year-to-date high of $194.
• Wall Street analysts are optimistic that the stock will rebound after earnings.
• The general view is that its revenue growth will gain steam in the coming months.

NVIDIA stock price has found a major barrier this year. It has struggled to move above the key resistance level at $194.90, its highest level since November last year. This article explores whether the stock will blast higher after earnings as Wall Street analysts predict.

NVIDIA, the biggest company in the world and the biggest beneficiary of the ongoing artificial intelligence (AI) boom, is struggling this year. It remains 10% below the highest point in November last year and is lagging behind the broader market, including the S&P 500 and Dow Jones.

Still, Wall Street analysts are optimistic that the NVDA stock is a coiled spring ready to pounce ahead of earnings, citing its strong financial results and its market share in the GPU industry.

In the latest rating before its earnings, Timothy Arcuri, a senior UBS analyst, set his target at $400, representing a 110% surge from the current level.

A WedBush analyst reiterated his outlook for the stock to $230, slightly higher than the current $191. Other analysts from companies like KeyCorp, DA Davidson, Morgan Stanley, and Cantor Fitzgerald all reiterated their estimate for the NVIDIA stock price.

Therefore, the consensus estimate among all analysts tracking the company has set a target of $267, up by 40% from the current level. The consensus target was $168 12 months ago and $263 three months ago.

A surge to the consensus target of $267 would take its market capitalization from the current $4.65 trillion to over $6.46 trillion.

The general view among analysts is that NVIDIA’s business is doing well and has more room to grow in the future. For example, data compiled by Yahoo Finance shows that the company’s revenue will jump by 68% to over $66 billion. The most optimistic analyst expects revenue to come in at $71 billion.

Similarly, analysts expect that the company’s earnings per share (EPS) jumped from 89 cents in the fourth quarter of 2024 to $1.54 in Q3’25.

NVIDIA’s annual revenue is expected to come in at $213 billion, well above the $130 billion it reported a year earlier. It will then exceed $329 billion next year, with most analysts expecting it to cross the $500 billion mark in 2028.

NVIDIA’s revenue growth will likely continue growing in the coming years as its top customers like Microsoft, Google, and Meta Platforms expect to continue spending heavily on data centers. Combined, the top four American companies will spend over $650 billion this year. Most of these funds will go to NVIDIA, which makes the most advanced chips.

Another potential catalyst for the NVIDIA stock is that Chinese companies are buying its chips using foreign operations. For example, according to Reuters, DeepSeek used the latest Blackwell chips to train its latest model, which will be launched next year.

The daily timeframe chart shows that NVDA stock has rebounded over the past few days, rising from a low of $170 this month to the current $191.

It has moved slightly above the 50-day Exponential Moving Average (EMA), a sign that bulls are gaining momentum. NVIDIA shares are attempting to flip the Supertrend indicator from red to green.

The Percentage Price Oscillator (PPO) and the Relative Strength Index (RSI) have continued rising.

Therefore, there is a likelihood that the stock will have a bullish breakout, potentially to the key resistance level at $200. A move above that level will point to more gains to the all-time high of $212.

The main risk, however, is that the stock has formed a head-and-shoulders pattern, pointing to a potential bearish breakdown.

The post NVIDIA Stock Hits a Barrier as Wall Street Pros Eye a Rebound Ahead of Earnings appeared first on The Market Periodical.