Nvidia Lower Post Earnings

Happy Thanksgiving

Nvidia is trading down after the earnings release, it did swing to the $510 area before dropping to the $470 area on thin post close trading. Currently its $493 down over $6:

Source: ThinkorSwim

As we noted earlier the $500 call strike is heavy so most likely market makers will try to keep a lid there. As far as the earnings they were beat across the board but Nvidia warned of a slowing Chinese demand, but other sectors should make up the lack of demand there. Here are the numbers per Zerohedge:

• Adjusted EPS $4.02 vs. 58c y/y, estimate $3.36

• Revenue $18.12 billion vs. $5.93 billion y/y, estimate $16.09 billion

  • Data center revenue $14.51 billion vs. $3.83 billion y/y, beating estimates of $12.82 billion

  • Gaming revenue $2.86 billion, +82% y/y, beating estimates of $2.7 billion

  • Professional Visualization revenue $416 million vs. $200 million y/y, beating

• Data Center revenue was a record, up 279% from a year ago

A close below $476 would indicate a nice top here this week, above $500 again tomorrow may see buyers pressuring upside again:

We know the overall tone in equity land has been straight up, but earnings like this tend to cause some to focus on the result. Tomorrows close in Nvidia will be highly scrutinized, $500 is the marker, a close above and bull case still in place. A close below could see further probes down and a more consolidative tone. So keep an eye on this one for tomorrow. Ok we may be limited in the delivery of our note the next couple of days to enjoy the Thanksgiving celebrations. We hope you enjoy time with your family, friends and make the most out of all the time away from these chaotic markets.

We thank you for continuing to support and following our work, to those that share it we are certainly grateful.