NVIDIA Crushes Earnings, Near All Time High

The darling of the AI world right now, Nvidia (NVDA) crushed earnings after the close on Tuesday, November 21, 2023. Analysts were forecasting $3.36 per share but it delivered $4.02 per share. If I were a shareholder, I’d be pretty happy and expecting the stock price to go up from here. Then why are some investors and traders concerned that it might have peaked?

According to Yahoo, the concern is the Biden Administration’s AI chip export controls. I can’t help but think it’s something else.

Nvidia earnings crush Wall Street estimates again, company tempers China outlookNvidia’s stock reached a record high ahead of the company’s earnings report Tuesday after the bell.Yahoo FinanceJosh Schafer

NVDA’s stock price has been lagging for a while since it hit an all-time in late August 2023. I was lucky enough to catch the melt up from May 2023 using my trend-following system and made a tidy profit for my trading and investing portfolio. My reason behind getting into that position was two-fold: the demand for LLMs would need a lot of GPUS and NVDA hit an all-time high back then.

Strong demand and an all-time high are big green flags. Today, NVDA is bumping around its all-time high but not making any. There’s no big volume to push it higher than August’s all-time high and that causes concern. If you’re a candlestick chart reader, that all-time high in August was really an all-time high open and then a close lower, a lot lower on high volume. Another negative sign.

With the recent turmoil at OpenAI and Microsoft entering the chip-making field, NVDA might be feeling the competition. Maybe traders think the easy money is over or it could be something completely different than what I can divine.

That’s the nice thing about the market, all you need to do is read the price and volume to understand the sentiment of a particular stock in the market.