The AI trade bellwether reported earnings after the closing bell [Wednesday], beating Wall Street’s expectations.
Revenue came in at $96.2 billion, up 18% from the prior quarter and up 106% from last year. That was ahead of the $92.1 billion Wall Street was expecting.
Earnings per share hit $2.22, up more than 100% from the same quarter last year.
And investors loved what they heard.
Since [Wednesday’s] close, NVDA has climbed about 10%, putting it near 1-month highs.
Our Signals system called the move early.
A signal study is a way to read a stock’s own history to figure out what tends to happen next. Every stock has a kind of “thumbprint” – patterns in its trading that show up again and again.
Our software scans years of that history, finds the moments that looked just like today, and asks a simple question: The last time this setup appeared, which way did the stock go, and by how much?
Not once or twice – but dozens of times, going back years. Instead of guessing, you’re leaning on what the stock has actually done every other time it looked like this.
Yesterday, a “volatility expansion” signal fired for NVDA.
That fires when a stock has been in a tight trading range, and then it suddenly expands. And it’s worth paying attention to.
Over the past 10 years, this same signal has fired 21 times, with a 76.2% accuracy rate.
The average gain across those winning trades is 7.6% against an average loss of 6.8% on the ones that didn’t work – a reward-to-risk ratio of better than 3.6 to 1. The typical hold time is around two weeks.
Since this signal fired, the stock is already up more than 6%.
If you’re in the stock as a short-term trade, $230 is worth setting as a price alert over the next two to three weeks – this signal’s typical hold time.
If you’re not, consider jumping into this trade to take advantage.
And I should note, a brand-new volatility expansion signal has fired on NVDA as of yesterday’s close, too – this one pointing for a 6.4% average winning gain and an 80% accuracy rate. So there’s even more evidence that NVDA has room to run.
— Michael Salvatore
Carnegie didn't invent steel. He used new technology to produce it cheaper and faster than anyone on Earth. Rockefeller didn't discover oil. He used industrial machinery to refine it more efficiently. Vanderbilt didn't build the railroad. He understood that whoever controlled the infrastructure controlled the economy. Their combined fortunes were between $700 billion and $1 trillion. Best-selling financial author Alexander Green has identified three companies positioned to be the Titans of the AI age. CLICK HERE TO FIND OUT WHO THEY BEFORE THE WINDOW CLOSES.
Source: TradeSmith
