Nvidia is set to report earnings Wednesday after the bell and to say this is the Super Bowl of earnings reports is an understatement. There has been so much talk about the exorbitant amount of cap-ex spending that needs to be done by companies not just in the technology sector to position for the AI revolution. My gut feeling is that Nvidia (NVDA) will surpass those expectations and the stock could move to new highs, but earnings are always a crapshoot.
We do have the overhang of the delayed Blackwell chip that could act as a drag on the report or any other data point that investors might get hung up on that could cause a sell-off in the stock. In this piece I would like to first take a big step back and look at the technical picture of this company and remind us not to lose sight of the forest for the trees, and then I'll get into my playbook to handle our positions in NVDA in our various managed accounts. This is arguably one of the most historic stocks ever and from a technical position I see this stock has another 50%-to-75% upside before I see any significant resistance coming into play.
Using a basic Elliott Wave count from the October lows I see the first of three trend waves (labeled 1,3,5) traveling 365%. The 2nd trend wave labeled wave (3) traveled 258% to June of this year. The final trend wave labeled as wave (5) could meet the pair of Fib projection levels forming both a target as well as a resistance zone of $199-$234, approximately 70% higher from here.
Turning.