\n up NVIDIA Corporation boasts an extensive range of products for the AI market, enabling the company to meet diverse client requirements.<\/p>\n\n\n\n In October 2022, the US imposed restrictions on the export of high-performance AI GPUs to China. To comply with the new US export control regulations, NVIDIA Corporation has developed the A800 chip specifically for the Chinese market. One of the major differences between the A800 and the A100 is their data transfer speed: 400 GB\/s versus 600 GB\/s.<\/p>\n\n\n\n On 9 August, it became known<\/a> that China’s internet giants were rushing to proactively buy these chips in their concern that the US would soon extend restrictions to cover these models too. The orders placed amounted to approximately 5 billion USD.<\/p>\n\n\n\n Saudi Arabia and the United Arab Emirates are also procuring <\/a>high-performance NVIDIA chips in large volumes. For example, Saudi Arabia has secured nearly 3,000 NVIDIA H100 GPUs at a price of 40,000 USD per unit.<\/p>\n\n\n\n The growing interest<\/a> in generative AI has led to a shortage of NVIDIA H100 chips, which are great for AI model training purposes. In April, there was a surge in demand for GPUs tailored for AI applications, when the company coincidently unveiled its new H100 chip. Overnight, its delivery timelines shifted from reasonable to extended, significantly affecting large enterprises and AI labs.<\/p>\n\n\n\n The stock of NVIDIA Corporation is trading above the 200-day Moving Average<\/a>, indicating a prevailing uptrend. However, a divergence<\/a> has formed on the MACD<\/a>, signalling a possible correction. In this scenario, the stock might seem overvalued, meaning it might decline.<\/p>\n\n\n\n A quarterly report exceeding the expectations of the management and market participants could send the shares skyrocketing. As a result, a new maximum high could be set, while the MACD could form a new divergence. Overall, the probability that the shares will rise further after the quarterly report is low. Among the fundamental factors that could trigger a correction in NVIDIA shares, two stand out: the release of a weak quarterly report and a pessimistic forecast for the current quarter.<\/p>\n\n\n\n Despite the remarkable upsurge in demand for AI chips, the company might still choose to give a cautious forecast for August to October. This caution could stem from the escalating sanctions against China, which could potentially impede attempts to deliver the corporation’s products to the country.<\/p>\n\n\n\n Another reason for a decline in NVIDIA Corporation shares could be the general negative sentiment in the stock market. On 15 August, the Fitch rating agency warned<\/a> about a probable forced downgrade on dozens of US banks. If this happens, investors’ risk aversion strategies could trigger the sale of the company's stock alongside a significant decrease in the S&P 500<\/a> (US500) and NASDAQ 100 (NAS100) indices<\/a>.<\/p>\n\n\n\n NVIDIA Corporation dominates the AI products market, and the progress in this segment significantly bolsters the company’s business. However, it is important to acknowledge that the tech giant’s management has set remarkably ambitious financial goals. For example, the company projects a 64% surge in revenue for the May to July period. It is difficult to say whether the management’s outlook for the current quarter will be as ambitious.<\/p>\n\n\n\n Technical analysis points to an impending correction in NVIDIA Corporation stock. The forthcoming forecast from the company might not be as impressive. In addition, it is essential to recall that sanctions against China are tightening progressively and could lead to the company potentially losing a key client. Should the stock price gain traction following the quarterly report, the quotes are highly likely to subsequently undergo a decline.<\/p>\n\n\n\n However, the situation could radically change following the Fed’s statements hinting at the conclusion of the discount rate hiking cycle. Such information is likely to motivate investors, boosting their willingness to embrace higher levels of risk. Consequently, the stock of NVIDIA Corporation could experience an uptick, further rising in response to advancements in AI. Let us not rule out the prospect of an optimistic outlook for this quarter from the corporation’s management.<\/p>\n\n\n\n
to<\/span>\n \n 85%<\/span>from spreads\n <\/span>\n \n +30%<\/span>from swaps\n <\/span>\n <\/p>\n <\/div>\n Become a Partner<\/a>\n <\/div>\n ![\"partner-programme\"](\"https:\/\/roboforex.com\/blog\/wp-content\/themes\/robo-blog-2021\/images\/infinity-logo.svg\"){kind=logo}
\n <\/div>\n<\/div>\n\n\n\n<\/span><\/a>NVIDIA’s main products for the data centre market<\/span><\/h3>\n\n\n\n
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<\/span><\/a>NVIDIA’s main products for the gaming market<\/span><\/h3>\n\n\n\n
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<\/span><\/a>NVIDIA’s main products for the automotive industry<\/span><\/h3>\n\n\n\n
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<\/span>NVIDIA’s main products for the professional visualisation market<\/span><\/h3>\n\n\n\n
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\n <\/div>\n <\/div>\n\n\n\n<\/span><\/a>Chips produced by NVIDIA for AI technologies<\/span><\/h3>\n\n\n\n
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<\/span><\/a>China, Saudi Arabia, and the UAE are acquiring NVIDIA chips<\/span><\/h2>\n\n\n\n
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\n <\/div>\n <\/div>\n\n\n\n<\/span><\/a>Technical analysis of NVIDIA stock<\/span><\/h2>\n\n\n\n
If a correction starts, NVIDIA Corporation quotes may drop to the 200-day Moving Average.<\/p>\n\n\n\n![\"NVIDIA](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/08\/nvda.png\")
<\/span><\/a>Fundamental analysis of NVIDIA stock<\/span><\/h2>\n\n\n\n
<\/span><\/a>Summary<\/span><\/h2>\n\n\n\n
Among the companies that have gone public on US stock exchanges with a market capitalisation exceeding 200 billion USD, NVIDIA Corporation<\/a> (NASDAQ: NVDA) stands out for showing the highest returns. Since the beginning of 2023, the value of its shares has skyrocketed more than 200%. The closest competitor in this category is Meta Platforms Inc.<\/a> (NASDAQ: META), whose shares have seen a remarkable 155% surge over the same period.<\/p>\n\n\n\n NVIDIA Corporation will release its quarterly report on 23 August 2023. If revenue exceeds the management’s forecast<\/a> of 11 billion USD, the technology giant’s stock price could reach an unprecedented high of 480 USD.<\/p>\n\n\n\n In this article, we will analyse the stock chart of the GPU and chip developer and manufacturer. We will aim at projecting potential levels to which the stock quotes could rise, identify signs of a potential uptrend coming to an end, and explore factors that could contribute to further growth in the company's revenue.<\/p>\n\n\n\n According to NVIDIA Corporation’s Q1 fiscal 2024 report, revenue for February to April increased 13% from the same period of last year, reaching 7.19 billion USD. The data centre revenue was 4.28 billion USD, accounting for 59% of the quarterly revenue. The gaming market brought the company 2.24 billion USD (31%), while the automotive technology segment and professional visualisation products generated 0.3 billion USD each (totalling 8%).<\/p>\n\n\n\n Compared to the results for Q1 of last year, the revenue of NVIDIA Corporation’s above-mentioned segments added 14%, 38%, and 114% respectively, while the professional visualisation area saw a decrease of 53% in the indicator.<\/p>\n\n\n\n<\/span><\/a>NVIDIA’s profit structure<\/span><\/h2>\n\n\n\n
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