Nvidia stock price dropped sharply last week as traders refocused on the upcoming earnings report that will provide insights into its revenue and profitability growth. NVDA will also react to news on GPU price hikes, which may boost its revenue in the foreseeable future.
Nvidia is hiking GPU prices
Nvidia, the world’s largest company, is hiking product prices, a move that could boost its revenue and profits but also carries risks.
According to Bloomberg, the company has already notified its biggest clients about these price hikes that will mostly affect products shipped in 2028. The report notes that the hikes will include systems with the flagship Vera Rubin and Grace Blackwell chips.
Nvidia cites the rising cost of doing business, including memory and other servers.
These hikes will help the company to boost its revenues this year and in the coming years. For this year, customers may decide to front-load the purchases to avoid the price hikes.
On the other hand, the price increases may have some major risks. For one, there is a possibility that some of its customers will decide to increase their pivot towards their internal chips and also alternatives.
While Amazon uses a lot of Nvidia chips, it is also working on improving its Trainium chips. These chips are the ones powering most of Anthropic’s AI training.
Microsoft has Maia chips, while Google and Meta Platforms have Maia and MTIA. Last week, Google expanded its partnership with Marvell Technology to accelerate the production of its TPU chips.
In addition to these companies, other top semiconductor firms are boosting their production of AI chips that may compete with Nvidia. The most notable ones are firms like Cerebras, Etched, and AMD.
Nvidia earnings results ahead
The next important catalyst for the NVDA stock price is its upcoming earnings report that will provide more information about its growth. Based on the last earnings reports by its clients and suppliers, chances are that its revenues and profits will be better than expected.
Analysts expect the upcoming earnings report to show that Nvidia’s revenue and profits surged last quarter. Its revenue growth is expected to be 96%, which would bring its revenue to $92 billion.
Its guidance for the third quarter is expected to be $103 billion. In reality, since Nvidia normally beats forecasts, chances are that the real figures will be $96 billion and $112 billion, respectively.
Nvidia’s earnings and revenues beat rarely moves the stock. One approach that may do the trick is a larger share buyback than the $80 billion it announced a few months ago. It would justify a bigger repurchase by focusing on its cheap valuation.
Nvidia stock price technical analysis
NVDA stock chart | Source: TradingView
The four-hour chart shows that the NVDA stock has dropped in the past few days, moving from a high of $227 to the current $214.75. It has already moved slightly below the 25-period Exponential Moving Average (EMA).
The stock has now retested the crucial support level of $214, its highest point on July 25. It has also stabilized at the 50-period Exponential Moving Average (EMA).
Therefore, there is a possibility that the stock will bounce back, potentially to the key resistance level of $227. A drop below the support level of $200 will invalidate the bullish outlook,
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