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
Top Stock Expert Who Called Nvidia at Less Than a Dollar Says... "$1,000 in Each of These Stocks Could Make You a Millionaire" By 2030.
Source: TradeSmith
