Nvidia stock falls 6% despite solid quarterly results

• The company's financial results released on 16 February 2022 positively surprised analysts.
• NVidia was one of the beneficiaries of the Covid-19 pandemic due to social trends which boosted revenues from the data center and gaming industry.
• The company said recently that the Arm acquisition of $40bn announced back in 2020 would not materialise.

The financial report released by Nvidia (NVDA.US) for Q4 2021 was positive:

• EPS per share rose nearly 69% year-on-year.
• Revenues exceeded expectations reaching $7.6 billion and increase 52.8 % year-on-year in Q3 2021. 
• Data centre revenue came in higher than expected, up 71.5% year-on-year (driven by strong Ampere graphics card sales)
• Nvidia shares rose 73.1% over the past year, significantly outperforming all US indices.
• The company expects to generate $8.1bn in revenue in Q1 2022 and beat the Q4 2021 result, representing 42% year-on-year growth. 

Despite the good report, the company stock experienced a sell-off related to global political instability and overall weakness of the technology sector. Declines intensified after the acquisition of Arm was canceled (a semiconductor manufacturer) that shareholders had been waiting nearly 2 years for. According to information from the company, the deal did not take place due to complicated regulatory issues that could not be fulfilled in cooperation with SoftBank. 

Nevertheless, Nvidia still has a chance to attract both value investors and the speculators  by participating in the growing and popular Metaverse trend of building alternative digital worlds.

Nvidia (NVDA.US) stock fell more than 6.0% during today's session and is currently approaching major support zone around $241.30, which is marked with lower limit of the 1:1 structure, 23.6% Fibonacci retracement of the last downward wave and lower boundary of the triangle formation. Should break lower occur, sell-off may deepen. Next target for sellers is located around January 2021 lows at $209.50. On the other hand, if buyers will manage to regain control, then nearest  major resistance lies at $262.00. Source: xStation5