Key Highlights
- NVDA advanced approximately 1.3% in premarket trading to $201.64, buoyed by Micron’s exceptional fiscal Q3 results
- Micron delivered earnings per share of $25.11 with revenue reaching $41.46B, surpassing analyst expectations; Q4 guidance targets ~$50B in revenue
- OpenAI announced a proprietary AI chip developed in partnership with Broadcom; Qualcomm revealed supply agreements with Microsoft and Meta
- Analyst consensus maintains a Buy rating on Nvidia with a mean price objective of $323.83
- Market expects NVDA’s earnings release approximately August 26, projecting EPS of $2.07 and revenue of $91.7B
Shares of Nvidia (NVDA) advanced approximately 1.3% during premarket hours on Thursday, reaching $201.64, propelled by strong performance from Micron Technology that energized investor sentiment throughout the semiconductor sector.
Micron delivered adjusted fiscal Q3 earnings of $25.11 per share alongside revenue totaling $41.46 billion, substantially exceeding Wall Street projections. Management projected fiscal Q4 revenue near $50 billion with adjusted earnings approaching $31 per share. Market participants interpreted these figures as confirmation of sustained investment in AI infrastructure, triggering broad gains across chip manufacturers.
S&P 500 futures simultaneously rose approximately 0.7% before market open, reinforcing the bullish sentiment.
NVDA had concluded Wednesday’s session with a 0.5% decline at $199, yet the enthusiasm surrounding Micron’s performance propelled shares back above the psychologically significant $200 threshold. This price level has served as reliable support since the stock initially crossed it in April.
Emerging Rivals in the AI Chip Landscape
This week introduced notable competitive developments. OpenAI revealed a proprietary AI chip created in collaboration with Broadcom (AVGO), while Qualcomm (QCOM) disclosed supply partnerships with both Microsoft (MSFT) and Meta Platforms (META).
These developments represent significant activity in Nvidia’s core market. However, market analysts emphasize that such agreements don’t automatically translate to Nvidia losing market position. The company’s GPUs continue to dominate preferences for numerous AI computing applications, and multiple leading technology firms have already pledged adoption of its upcoming Vera Rubin architecture.
Nevertheless, market participants remain vigilant. Without concrete evidence demonstrating Nvidia’s sustained market dominance, a degree of investor uncertainty persists.
Chart Analysis and Street Expectations
From a technical perspective, the stock presents a nuanced picture. NVDA currently trades roughly 4% beneath both its 20-day and 50-day moving averages, yet maintains positions above the 100-day and 200-day moving averages — preserving the broader bullish trajectory.
Momentum signals have weakened. The MACD indicator has dropped below its signal line, and the 20-day moving average has crossed beneath the 50-day — generating a near-term bearish indication. Key resistance appears around $217, while support holds near $199.50.
Over the trailing twelve months, shares have appreciated approximately 29%. Barron’s featured the stock as a recommended pick in mid-May when it traded at $226.
Regarding analyst sentiment, the consensus rating remains Buy with a mean price objective of $323.83. Recent analyst actions include China Renaissance initiating coverage with a Buy rating and $319 target, Needham sustaining its Buy recommendation at $270, and DA Davidson reaffirming Buy with a $300 target.
NVDA currently trades at approximately 30.5 times forward earnings.
The Street anticipates Nvidia will publish quarterly earnings results around August 26. Consensus estimates project EPS of $2.07, representing growth from $1.04 in the year-ago quarter, with revenue expected at $91.70 billion compared to $46.74 billion in the comparable prior-year period.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
