NVDA's Crypto Surge Dims Earnings Beat

No fewer than 17 analysts chimed in with price-target hikes

Deputy Editor
May 27, 2021 at 10:38 AM
facebook twitter linkedin

Nvidia Corporation (NASDAQ:NVDA) entered the earnings confessional last night after the close, reporting first-quarter earnings of $3.66 per share -- higher than the anticipated mean of $3.28 -- as well as revenue in line with expectations. The company also raised its second-quarter forecast above estimates, citing strong demand for flagship gaming and AI chips for data centers.

Nvidia said it gained $155 million in revenue during the first quarter from processors created specifically for mining cryptocurrency, though its more stable gaming segment was still its biggest driver. The chip manufacturer's revenue surge for these crypto mining chips could be putting some investors off, as market demand for cryptocurrency remains volatile. At last check, NVDA was down 1.2% to trade at $620.85. 

The stock is brushing off a slew of bull notes this morning too. No fewer than 17 analysts have chimed in with price-target hikes, including several all the way to $750 from BMO, Craig-Hallum, Evercore ISI, and BofA Global. 

Options traders are chiming in as well, with overall volume running at triple what's typically seen at this point. So far, 78,000 calls and 47,000 puts have crossed the tape. The most active option is the weekly 5/28 650-strike call, followed by the 625-strike call in the same series, with new positions being opened at both. 

On the charts, NVDA recently bounced off the $540 level with additional support from the 200-day moving average. However, the stock appears to be running into some pressure at the $630 region, which is keeping it from heading back up toward its April 15 record high of $648.56. Year-to-date, the equity is up 19.4%. 





These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners