Nvidia Stock Analysis Amid Strong TSMC Earnings & Japan Expansion

Nvidia stock has rebounded in the past few days, soaring from a low of $189.83 on June 29 to $213 on Wednesday. It then pulled back to $210 in the premarket session.

Still, the rally may persist after the strong Nvidia earnings and after the company makes some major announcements in Japan.

Nvidia Stock to Benefit as TSMC Earnings Jump

Nvidia stock soared after TSMC, its main manufacturer, published strong financial results. These numbers showed that its revenue jumped to $39.45 billion in the second quarter.

It now expects that its third-quarter revenue will be between $44.6 billion and $45.8 billion. That is much higher than what it made last year.

The management also announced that its second-quarter profit jumped by over 77%. At the same time, the management said that it would boost its Arizona investment by another $100 billion. That would bring the total to $265 billion.

These numbers are important for Nvidia because of the relationship that exists between the two companies. A surge in TSMC’s revenue is an indicator that Nvidia’s business continued growing during the quarter.

In addition to TSMC, other companies with exposure to the industry have published strong financial results. ASML, the top supplier to the semiconductor industry, published strong financial results on Wednesday.

Samsung Electronics and Micron Technology also published robust revenues and earnings growth and offered strong forward guidance. These numbers mean that spending has continued to jump in the past few months.

Analysts Predict Strong Nvidia Earnings

As a result, there is a likelihood that Nvidia’s business performed strongly as well. Yahoo Finance data shows that the company’s revenue is expected to come in at $91.74 billion, up by 96% YoY.

Judging by TSMC, Samsung, and Micron earnings, chances are that the revenue figure will be higher than these forecasts.

Also, the earnings per share (EPS) are expected to have stronger growth. Analysts predict that the EPS will jump from $1.05 to $2.09. For the year, analysts expect the EPS to move from $4.77 last year to $8.98. In most cases, the company normally does better than estimates.

Meanwhile, Jensen Huang has made some notable announcements on his trip to Japan. For example, the company announced that it will be working with Noetra to launch a new Vera Rubin AI factory.

That can make up to 13,750 CPUs and 27,500 Rubin GPUs. Japan’s AI and industry leaders are supporting this move. It will bring substantial sums of money over time.

Nvidia also announced a major partnership with Fujitsu, FANUC, and Kawasaki Heavy Industries. They will together explore capabilities for a physical AI control platform that will use Nvidia’s technology. The new products will be in the robotics industry, which is expected to do well in the coming years.

Looking forward, the biggest risk facing Nvidia is the upcoming big-tech earnings. That will provide more information about their spending priorities. A boost in capital expenditure will be bullish for the company.

Nvidia Stock Price Technical Analysis

The daily chart shows that the NVDA stock price has jumped in the past few days. It rose from a low of $189.83 on June 29 to a high of $213 this week.

This rebound happened after the stock formed a falling wedge pattern, which is made up of two falling and converging trendlines. This surge happened as the two lines were nearing their confluence.

The stock’s surge has seen it move above the 50-day moving average. It is also attempting to move above the Strong pivot reverse level of the Murrey Math Lines tool. Therefore, the rally will continue rising, potentially to the ultimate resistance of $225.