Buying Nvidia ahead of financial results release

Nvidia's stock has started to rise in value again since February 3. On February 3–10, the stock price increased from 112.78 to 134.77. This equals a gain of 16.3%. However, it should be noted that the prices have so far only returned to the level of mid-January, before the news about DeepSeek and Qwen.

Goldman Sachs analysts are warning of a possible decline in the shares of major technology companies, including Nvidia. However, many experts believe that this company's situation is different from the others.

Despite a pause in the growth of Nvidia shares since the beginning of the year, analysts consider them a good investment opportunity. The company remains a leader in the production of chips for artificial intelligence. Everyone's attention now turns to the financial results for the fourth quarter of 2024 which will be released on February 26.

Evercore's Mark Lipasis, one of Wall Street's top analysts, believes that investors' fears around Nvidia are exaggerated. The main concern is competition with ASIC, but Nvidia retains significant advantages because of its software ecosystem and large community of developers.

The company's shares are now trading below the average levels for the last 8 years in terms of price-to-earnings ratio. But despite these temporary difficulties, many experts recommend considering Nvidia as a promising long-term investment before the publication of its financial results.

Technical analysis shows mixed results. MACD indicates the reduction of negative values in the histogram, which may suggest a recovery of the growth. On the RSI chart, the value is fluctuating around 42 in the neutral zone. So far, the indicator does not show clear overbought or oversold signals.

141.65 will be an important resistance level. If the price manages to keep above this resistance level and grows further, the uptrend is likely to continue. Otherwise, a pullback is possible.

Current recommendation:

Buy at the current price. Take profit - 141.65. Stop loss - 116.47.