Upcoming Nvidia earnings: Has the AI hype cooled?

Nvidia has been the star of the US markets since the AI hype kicked off late 2022. The trillion-dollar chip
manufacturer’s shares have almost tripled in 2023 alone, with the price increasing every month so far
this year.

In May, Nvidia surprised the markets by posting earnings and revenue figures well above analysts’
expectations. This sent price rocketing and adding almost $184B USD to the market cap during the
following daily session.

Nvidia is set to release their Q2 results on Wednesday, so the markets will be watching to see if they
have been able to maintain the strong momentum over the past quarter. Markets are estimating
earnings of $2.076B and revenue of $11.14B.

Technically, the price has been ranging sideways between $400-$480 since around June 2023. There is a
strong support level around $400 that held multiple times in the past few months, so this will be a key
level to hold if the earnings on Wednesday are below expectations.

If earnings beat expectations, the price could head back north towards the resistance zone at about
$470. Traders will be watching this level to see if there is enough momentum to break through to all-
time highs again.

With the AI hype cooling off slightly over the past few months, it will be interesting to see how Nvidia
performed over the past quarter and if the momentum was sustainable.