Nvidia presents its Q2 results

August 19, 2021 16:30

In addition to the FOMC's monetary policy minutes, which hinted at the possible start of tapering by the end of this year, the market was watching for the different business results from the United States, where we could find a positive trend.

Among these results, perhaps the results for the second quarter of the American company Nvidia, which specialises in the development of graphics processing units and integrated circuit technologies for computers and mobile devices, perhaps stood out.

As we mentioned in the analysis carried out on July 29, this company is one of best performing companies so far this year, which has led it to experience a rise of close to 50% up until the end of last July, thus continuing with the bullish rally started in March 2020.

Due to these sharp rises, on July 21 the company made a split of 4 to 1 to make its shares more attractive to investors since with prices close to $800 per share the liquidity of these can be affected thus slowing its growth.

Generally, these operations are taken advantage of by investors to make partial closures of their positions and thus obtain profits to take advantage of this liquidity to invest in new opportunities, which sometimes cause temporary decreases in prices, although it does not seem that this is the case for Nvidia since it quickly continued with the rises and after the good results presented in yesterday's session this action could obtain a new momentum of looking to the future.

Specifically, Nvidia reported earnings per share of $1.04 along with revenue of $6.51 billion, beating market expectations, as earnings per share of $1.02 were expected with revenues of $6.32 billion. The negative point of these results is found in the graphics cards that are intended to mine cryptocurrencies, since these fell short of expectations.

Technically speaking, if we look at the daily chart, we can see that it is currently within a triangular consolidation formation that began after marking its all-time highs in the green band area. The loss of the lower support band could increase declines to the area near $180 per share.

On the contrary, a rebound could lead the price to face its average of 18 blank sessions that currently acts as the main resistance and a uptrend, could lead the price to face its current zone of highs.

Source: Admiral Markets MetaTrader 5. Nvidia's daily chart. from December 11, 2020 to August 19, 2021. Prepared on August 19, 2021 at 12:30 p.m. CEST. Please note that past returns do not guarantee future returns.


Evolution of the last 5 years:

  • 2020: 121.91%
  • 2019: 76.24%
  • 2018: -31.00%
  • 2017: 81.33%
  • 2016: 223.79%


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