Business Corpus: Nvidia Stock Breaks Out Ahead Of Earnings ReportShares of graphics-chip maker Nvidia hit a buy point in early trading on Monday, four days before the company is scheduled to report its fiscal first-quarter earnings. The post Nvidia Stock Breaks Out Ahead Of Earnings Report appeared first on Investor's Business Daily.

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Shares of graphics-chip maker Nvidia (NVDA) hit a buy point on Monday, four days before the company is scheduled to report its fiscal first-quarter earnings.

Nvidia shares gapped up 3.5%, near 247.40, in morning trading on the stock market today. The stock broke out of a seven-week double-bottom base at a buy point of 239.35.

The Santa Clara, Calif.-based company will report fiscal first-quarter results after the market close on Thursday.

Analysts expect earnings $1.45 a share, up 84% year over year, on sales of $2.89 billion. That's up 49%, for the quarter ended April 29. Key focus areas of the report will be prospects for graphics processors in data centers, artificial intelligence and cryptocurrency mining.

For the current quarter, Wall Street is modeling the chipmaker to earn $1.47 a share, up 60%, on sales of $2.94 billion, up 32%.

Nvidia also is holding its annual shareholders' meeting on May 16.

Nvidia Momentum Seen Continuing

The trends that have driven its shares are likely to continue, Raymond James analyst Chris Caso said in a note to clients Monday. He reiterated his outperform rating on the stock.

"While the stock continues to trade at an elevated multiple, the growth rate has been justifying the multiple, and we see catalysts ahead to maintain that momentum," Caso said.

Those catalysts include cloud computing data centers, artificial intelligence and cryptocurrency mining. Sales of graphics processors for gaming PCs also remain strong, Caso said.

Nvidia is likely to release new gaming processors in June, which could start an upgrade cycle, he said.

Nvidia is currently ranked No. 21 on the IBD 50 list of top-performing growth stocks.

The post Nvidia Stock Breaks Out Ahead Of Earnings Report appeared first on Investor's Business Daily.