Nvidia Bullish Ahead Of Q1 Earnings, But Will H20 Chip Woes Dampen The Party?

Core Viewpoint - Nvidia is set to report its first-quarter earnings with expectations of $0.88 in earnings and $43.21 billion in revenue, but potential supply chain issues may impact results [1][2]. Financial Expectations - Wall Street anticipates earnings of 88 cents and revenue of $43.21 billion for the quarter [1]. - The guidance for the July quarter may be reduced by approximately 10% due to supply chain challenges related to the H20 chip [5]. Technical Analysis - Nvidia stock is currently trading at $135.50, above its eight-day, 20-day, and 50-day simple moving averages of $134.03, $125.44, and $115.39 respectively, indicating a bullish trend [3]. - The Moving Average Convergence Divergence (MACD) stands at 6.31, suggesting continued upward momentum, while the Relative Strength Index (RSI) is at 68.00, indicating healthy buying pressure but nearing overbought territory [4]. Supply Chain Challenges - The H20 chip, crucial for Nvidia's AI hardware, is facing production delays in China, which is a significant market for the company [6]. - Issues such as slower rack production and power supply constraints are contributing to mixed sentiment regarding Nvidia's performance [6]. Market Sentiment - Despite a nearly 25% increase in Nvidia's stock over the past month, there are concerns about whether the stock can maintain its bullish trend amid potentially weak guidance [7]. - Long-term confidence remains, with expectations of around $5 in earnings power for the year, despite short-term supply issues [6].