Dividends Double Down: Nvidia Bets Big on Future Growth

Nvidia Corporation (NASDAQ: NVDA) has emerged as the ultimate powerhouse in the advancement of artificial intelligence (AI), solidifying its position as the poster child of technological innovation. With a staggering 90% surge in its stock value since the year’s inception, Nvidia’s fiscal first-quarter earnings report has sent shockwaves through the market, surpassing all expectations on both the top and bottom lines. 

The company’s remarkable performance is underscored by its astronomical revenue of $26.04 billion for the quarter ended April 2024, marking an unprecedented year-over-year increase of 262.1%. Crucially, Nvidia’s data centre sales, the cornerstone of its business, soared to $22.6 billion, a remarkable 427% rise from the previous year. 

Nvidia’s meteoric rise is underpinned by its unrivalled dominance, commanding over 80% of the AI chip market. This unparalleled market share, coupled with robust earnings per share (EPS) of $6.12 compared to $1.09 a year ago, underscores Nvidia’s unrivalled prowess and strategic foresight. 

Moreover, the company’s bold move to increase its dividend by 150% speaks volumes about its confidence in sustaining this exponential growth trajectory. With a projected second-quarter revenue of $28 billion, surpassing analyst estimates, driven by burgeoning demand for AI chips, Nvidia’s innovation and resilience firmly position it at the forefront of technological evolution. 


Nvidia’s share price has been trading in a pronounced uptrend, consistently exceeding the critical 100-day moving average. This upward momentum is further validated by the formation of an ascending channel pattern, underscoring the stock’s robust trajectory.  

Following a recent downturn, the share price found solid support at the $756.06 level, coinciding with oversold conditions as indicated by the Relative Strength Index (RSI). The subsequent rebound has set Nvidia’s stock on a course towards its all-time high of $967.66 per share.  

The strong fiscal first-quarter earnings have bolstered investor confidence, potentially driving further interest in the stock. If the current upside momentum persists, a breakout above the $967.66 level could signal additional gains. In such a scenario, the 23.60% Fibonacci Extension level could serve as a potential target for traders looking to capitalize on this upward movement. Conversely, if the market sentiment shifts and a downturn occurs, the $756.06 support level could act as a barrier, potentially preventing further declines.  


Nvidia’s unparalleled dominance in AI and robust financial performance, highlighted by a 262.1% revenue surge to $26.04 billion, position it as a tech leader. With support at $756.06 and potential gains above $967.66, Nvidia’s innovation and strategic foresight promise sustained growth and investor confidence. 

Sources: Nvidia Corporation, London Stock Exchange Group, Reuters, CNBC, TradingView 

Piece Written By Nkosilathi Dube, Trive Financial Market Analyst 

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