Asset Watch
Tuesday, 27th of May 2025
Investors are closely watching NVIDIA’s Q1 earnings report, scheduled for release on Wednesday, May 28. The company’s stock has attracted significant market interest in recent years, driven by the artificial intelligence boom that began about two years ago and has helped propel its market capitalization beyond $3 trillion.
Given the magnitude of this interest, the substantial market capitalization, and the economic growth prospects tied to AI technologies, expectations for the company’s performance are typically very high. Therefore, any failure to meet these expectations could have a significant negative impact on the stock price.
The company is expected to generate revenue of approximately $43.12 billion for the first quarter, with earnings per share estimated at $0.89. Any results falling short of these projections could negatively affect the stock’s performance.
One of the most significant recent influences on NVIDIA’s stock has been the tariffs imposed by former President Donald Trump’s administration—particularly those targeting China, which has already faced challenges under the Biden administration in acquiring advanced chips produced by NVIDIA, essential for AI applications.
However, the intensity of this trade conflict has eased recently, especially after Trump announced the suspension of certain tariffs to allow for negotiations. Other factors have also supported the stock, including the recent tour of the Middle East by President Trump, accompanied by NVIDIA’s CEO, during which major deals were signed—enhancing the company’s growth outlook.
On May 12, NVIDIA’s stock price broke above the downtrend line, originating from the January 7 high and continued to climb, reaching a high of 137.38 before pulling back due to profit-taking.
The price could be on the way to test key support level at the 200-day moving average, currently positioned at 125.62. A daily close below this level would indicate a potential continuation of the decline toward 115.14, where the 50-day moving average intersects with the downtrend line. However, a potential rebound from the 118.79 support level should also be considered.
If the stock resumes its upward trend, it may retest the resistance level at the February 18 high. A daily close above this level would signal increased bullish momentum, opening the door for a continued rise toward 153.13. In this scenario, the psychological resistance at 150.00 should be closely monitored.
Chart Source: ADSS Platform