Shares of graphics-chip maker Nvidia (NVDA) neared a buy point in early trading on Monday, four days before the company is scheduled to report its fiscal first-quarter earnings.
XNvidia shares were up 1.8%, near 243.40, in premarket trading on the stock market today. Nvidia stock had formed a double-bottom base over the past seven weeks with a buy point of 239.35.
The Santa Clara, Calif.-based company is scheduled to report fiscal first-quarter results after the market close on Thursday.
Analysts expect Nvidia to earn $1.45 a share, up 84% year over year, on sales of $2.89 billion, up 49%, in 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 Nvidia 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 Nvidia's stock are likely to continue, Raymond James analyst Chris Caso said in a report Monday. He reiterated his outperform rating on Nvidia.
"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.
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The post Nvidia Stock Nears Buy Point Ahead Of Earnings Report appeared first on Investor's Business Daily.
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