S&P 500   4,109.31
DOW   33,274.15
QQQ   320.93
Closing prices for crude oil, gold and other commodities
The "King Of Quants" sees 10X potential... (Ad)
MarketBeat Week in Review – 3/27 - 3/31
UK travelers face hours-long waits for ferries to France
The "King Of Quants" sees 10X potential... (Ad)
Intensity and insults rise as lawmakers debate debt ceiling
Credit Suisse takeover hits heart of Swiss banking, identity
The "King Of Quants" sees 10X potential... (Ad)
UN body mulls deep sea mining amid demand for minerals
Small areas reopen near Fukushima nuclear plant, few return
S&P 500   4,109.31
DOW   33,274.15
QQQ   320.93
Closing prices for crude oil, gold and other commodities
The "King Of Quants" sees 10X potential... (Ad)
MarketBeat Week in Review – 3/27 - 3/31
UK travelers face hours-long waits for ferries to France
The "King Of Quants" sees 10X potential... (Ad)
Intensity and insults rise as lawmakers debate debt ceiling
Credit Suisse takeover hits heart of Swiss banking, identity
The "King Of Quants" sees 10X potential... (Ad)
UN body mulls deep sea mining amid demand for minerals
Small areas reopen near Fukushima nuclear plant, few return
S&P 500   4,109.31
DOW   33,274.15
QQQ   320.93
Closing prices for crude oil, gold and other commodities
The "King Of Quants" sees 10X potential... (Ad)
MarketBeat Week in Review – 3/27 - 3/31
UK travelers face hours-long waits for ferries to France
The "King Of Quants" sees 10X potential... (Ad)
Intensity and insults rise as lawmakers debate debt ceiling
Credit Suisse takeover hits heart of Swiss banking, identity
The "King Of Quants" sees 10X potential... (Ad)
UN body mulls deep sea mining amid demand for minerals
Small areas reopen near Fukushima nuclear plant, few return
S&P 500   4,109.31
DOW   33,274.15
QQQ   320.93
Closing prices for crude oil, gold and other commodities
The "King Of Quants" sees 10X potential... (Ad)
MarketBeat Week in Review – 3/27 - 3/31
UK travelers face hours-long waits for ferries to France
The "King Of Quants" sees 10X potential... (Ad)
Intensity and insults rise as lawmakers debate debt ceiling
Credit Suisse takeover hits heart of Swiss banking, identity
The "King Of Quants" sees 10X potential... (Ad)
UN body mulls deep sea mining amid demand for minerals
Small areas reopen near Fukushima nuclear plant, few return

NVIDIA Is Bottoming But Don’t Buy It Just Yet 

Key Points

  • NVIDIA stock may be at a bottom but there is a risk for investors. 
  • The sentiment is still bullish, but price targets are falling and weighing on the action.
  • If Q4 results and outlook are not good enough this stock could set a new low. 
  • 5 stocks we like better than NVIDIA

NVIDIA Is Bottoming But Don’t Buy It Just Yet 

NVIDIA Corporation (NASDAQ: NVDA)  is bottoming, but investors are cautioned not to get too bullish too quickly. While the fundamental set-up is consistent with a potential bottom and the technical set-up shows a potential Head & Shoulder Reversal this pattern is far from confirmed. The risk for investors today is that this pattern will turn into a full-blown double bottom and offer a better price before it starts moving higher. 

As it is, the company’s revenue and earnings are in a deep contraction versus last year, weighing on the near-term outlook. If the Q4 results and outlook for F23 are consistent with the market’s outlook that business will improve as we move into the latter portions of F2023, this bottom may hold and even turn into a reversal. If not, NVIDIA will most likely see much lower prices. 

NVIDIA Corporation Expected To See Double-Digit Declines 

Marketbeat.com’s analyst tracking tools show the targets for NVIDIA revenue and earnings are not only expected to decline by high-double-digit figures, but the consensus estimates are trending lower as well. The targets for Q4 have revenue and earnings up sequentially but down 21% and 58% on a YOY basis.

This is largely due to a contraction in the gaming industry as well as macro-headwinds and slowdowns in other key areas, including cloud and cryptocurrency. The good news is the consensus estimates for F2023 are expecting a significant rebound in both figures the question is when will the rebound start and how big will it be? 


Bank of America analysis recently released a report after meeting with company executives. The takeaway is that near-term headwinds persist, but demand for next-generation technology remains high and has the company in a good position for when the economic rebound begins.

As for when that should start, in the case of NVIDIA, Bank of America is expecting that to happen sometime after the fiscal 1st quarter of the year which has not begun yet. What this means for investors is that the upcoming Q4 release on February 22nd and the one after could be disappointing. There is certainly a chance for the outlook to dim or for the rebound to be “kicked down the road” with each report. 

Bank of America reiterated its Buy rating and $215 price target with the report. The rating and the price target are slightly above the consensus ratings of Moderate Buy and $206, which implies about a 45% of upside for the stock. The only bad news is the price target is trending lower, so there is no bottom in sight in that regard. Assuming this trend continues over the next 5 weeks, NVIDIA stock could easily move lower before it forms a firm bottom. 

The Technical Outlook: NVIDIA Is Close To Bottoming But Not Quite There Yet

NVIDIA price action may be at the bottom now, but we would need to see a strong bounce from at or near the current levels to call it a Head & Shoulders Pattern. The technical risks are that weekly and daily price actions, along with the indicators, are consistent with a downtrend that could take the stock back to the recent lows near $125.

In this scenario, the market might form a Double-Bottom, but only if the news is consistent with a brightening outlook. If not, NIVIDIA could fall to a lower low and shave a few more handles off its high 43X price multiple. 

NVIDIA Is Bottoming But Don’t Buy It Just Yet 

Should you invest $1,000 in NVIDIA right now?

Before you consider NVIDIA, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NVIDIA wasn't on the list.

While NVIDIA currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here


Investing Strategies To Help Grow Your Retirement Income

Need to stretch out your 401K or Roth IRA plan? Use these time-tested investing strategies to grow the monthly retirement income that your stock portfolio generates.

Get This Free Report
Investing Strategies To Help Grow Your Retirement Income Cover

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
NVIDIA (NVDA)
2.5095 of 5 stars
$277.77+1.4%0.06%159.64Moderate Buy$259.87
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

Contributing Author: Technical and Fundamental Analysis

Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Contact Thomas Hughes via email at tmhughes.writeon@gmail.com.

NVIDIA Stock Confirms Reversal Headed Higher?

This video highlights NVIDIA's earnings report and covers the market response to NVIDIA's performance, including a confirmed reversal in the stock chart.

Featured Articles and Offers

Search Headlines: