This evening, after the closing bell at Wall Street, it will finally be NVIDIA\u2019s turn to report its quarterly results, effectively wrapping up this earnings season. Described by a well-known American strategist as \u201cthe top company within the top industry within the top sector,\u201d the stock \u2014 which has gained 1,400% since September 2022 \u2014 is almost certain to move markets.<\/p>\n\n\n\n
With such an exceptional performance and so much attention on the name, it is no surprise that its fundamental valuation ratios are \u201crather\u201d elevated: NVDA trades at a P\/E of 51.2\u00d7<\/strong>, compared with 29.9\u00d7<\/strong> for the S&P 500. Looking at the forward P\/E, the picture normalizes slightly \u2014 27.7\u00d7<\/strong> versus 22.4\u00d7<\/strong> \u2014 but these are still high levels. Other valuation metrics look even more stretched: the chipmaker\u2019s P\/S is 27.9\u00d7<\/strong>, and its P\/B stands at 45\u00d7<\/strong>; by comparison, Microsoft trades at roughly 13.5\u00d7<\/strong> and 14.5\u00d7<\/strong>, respectively.<\/p>\n\n\n\n In short, valuations are undoubtedly rich. The question is whether they are justified by future business prospects. For tonight, the consensus expects EPS of $1.23 per share<\/strong> and revenues of $54.6 billion<\/strong> (up 55% year-over-year).<\/p>\n\n\n\n NVDA closed yesterday at $181.36 (-2.81%)<\/strong>. The options market suggests that dealers expect a potential post-earnings move of roughly 6.2%<\/strong> \u2014 this indicates only the magnitude of the expected move, not the direction. In other words, options markets would not be surprised to see either a sharp rally or a drop of around $11 from the close. This implies potential trading levels around $170<\/strong> on the downside or $192<\/strong> on the upside, depending on how results are received.<\/p>\n\n\n\n From a more traditional chart-based perspective, NVDA has recently broken the steeper upward trendline that had supported the rally since the post-tariff-crisis rebound in late August 2025, and it has since remained above a much flatter trendline (originating from the August 20 low and confirmed on September 25, October 22, etc.). Since November 3 \u2014 from near-record highs at $211.35<\/strong> \u2014 the stock has been clearly bearish, with the current trendline now passing through $186.8<\/strong>. Volumes have been particularly elevated in the last two sessions, which contributed to the current all-time highs.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" This evening, after the closing bell at Wall Street, it will finally be NVIDIA\u2019s turn to report its quarterly results, […]<\/p>\n","protected":false},"author":14,"featured_media":104002,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2932],"tags":[656,646],"class_list":["post-104669","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technical","tag-analysis-tag","tag-stocks-tag"],"acf":[],"yoast_head":"\nTechnical Analysis<\/strong><\/h3>\n\n\n\n