NVIDIA Stock Price Eyes Two Big Events as C&H Pattern Points to a Surge

NVIDIA stock price extended gains for a third straight session as traders positioned ahead of earnings and the upcoming U.S.-China summit. NVDA traded near $215, slightly below its all-time high of $216.60.

The rally followed a broader surge in artificial intelligence-linked equities as investors increased exposure to semiconductor companies tied to hyperscaler spending.

NVIDIA Stock Chart Signals More Upside

Technical indicators suggest NVIDIA stock still has room for another leg higher. The daily chart shows NVDA forming a cup-and-handle pattern, one of the most closely watched bullish continuation structures in technical analysis.

The upper boundary of the cup formed near $212.10, while the rounded bottom developed around $164. NVIDIA then formed the handle section during the consolidation period that started in late April.

The projected breakout target comes from measuring the cup depth and extending the same distance above the neckline resistance. That calculation points toward a possible move to around $262.

Such a rally would push NVIDIA’s market capitalization above $6.3 trillion, extending its lead among the world’s largest public companies.

Momentum indicators also remain constructive. NVIDIA continues trading above key moving averages while maintaining higher highs and higher lows since April.

NVIDIA to Publish its Quarterly Results

The other important NVIDIA news will come out next Wednesday, when it releases its financial results.

Given the recent earnings of its top suppliers and customers, the company is likely to report strong numbers. TSMC, its top manufacturer, said its revenue jumped by more than 30% in the last quarter. This is crucial as NVIDIA is one of its top clients.

Other top suppliers like SK Hynix, Samsung, Micron, Foxconn, and Hon Hai have also reported strong numbers. At the same time, its clients like Microsoft, Amazon, and Google also boosted their AI capital spending plan for the year.

Therefore, odds are that NVIDIA’s revenue will exceed $80 billion, well above the $78 billion analysts expect. Such a number will represent a 80% growth compared to the same period last year. NVIDIA likely boosted its gross and net profit margins in the first quarter.

The NVDA stock price will also react to the company’s forward guidance. Analysts predict that its second-quarter revenue will come in at $86.60 billion, up by 85% YoY. Its annual revenue will likely cross the important $400 billion milestone this year.

Therefore, an NVIDIA earnings beat will not be the only driver for the stock. Rather, investors will watch the magnitude of the beat.