NVIDIA to report quarterly earnings while near historic highs

Nvidia stock is recovering after a sharp drop at the end of January. After yesterday’s trading session, the stock prices declined slightly. However, with technical indicators showing no overbought and reversal signals, the upward movement can be considered incomplete. The price is well positioned to rise until February 26, when the company reports its quarterly earnings. The report may trigger mass profit taking by the bulls. 

Bank of America analysts note Nvidia's continued dominance in the artificial intelligence (AI) hardware market. They believe that the stock is definitely worth buying even if the financials turn out to be slightly below analysts' forecasts. The Nvidia’s GTC conference scheduled for March 17 should be another trigger for the rise of the corporation’s stock prices. New chips for AI, robotics, and quantum computing are expected to be presented during the conference.

Meanwhile, Bloomberg columnist Dave Lee pays attention to yesterday’s news. Elon Musk’s company xAI announced its newest chatbot Grok-3, which is to be a serious competitor to both ChatGPT and Chinese DeepSeek. According to Lee, xAI data center currently has around 100,000 Nvidia GPUs and should eventually expand to 1 million units. 

Nvidia CEO Jensen Huang praised the pace of xAI's development. According to him, xAI is about to strike a $5 billion deal with Dell to create servers which will use even more Nvidia hardware. Huang does not deny the risks associated with DeepSeek launch. However, Nvidia does not just sell chips, but a whole range of technologies. Its computing platform CUDA is extremely popular among AI developers and is compatible only with the company’s chips. 

At the moment, the main target for Nvidia stock buyers is a return to the historic high of January. To increase the reliability of the trade, the position can be closed a little earlier, at the level of 152.

Consider the following trading strategy:

Buy Nvidia at the current price. Take profit – 152. Stop loss – 130.