NVDA Hits Record High, But Could Correction Be Ahead?

• Nvidia (NVDA) stock price opened with a 27% jump to $380 on May 26.
• The company reported stronger-than-expected forecast in its Q1 earnings report for its fiscal 2024.
• The recent rally created a gap, which could mean a correction ahead of the stock.

Nvidia’s New Record High

Nvidia (NVDA) established a new record high, opening the May 26 session with a nearly 27% jump, changing hands at $380 after peaking at $394 hours prior. This left a gap on the chart, which could hint at an impending correction despite the recent rally.

Q1 Earnings Beat Expert Expectations

The latest Nvidia earnings report beat expert expectations and brought its year-to-date gains to 170%. Nvidia reported a forecast of about $11 billion, plus or minus 2%, in the current quarter, more than 50% higher than Wall Street estimates of $7.15 billion. Furthermore, Nvidia’s data center group reported sales of $4.28 billion versus expectations of $3.9 billion.

Gap Could Signify Correction Ahead

The spike in NVDA left a gap on the chart, which could signify that there is potential for a looming correction ahead as “gaps must be filled” – typically occurring because of underlying fundamental factors such as unexpected earnings reports. If so, then NVDA may reach corrections levels as low as $335 -a previous record established in Nov 2021.

Experts Predicted A Decline After Q1 Report Release

Before the release of their Q1 report experts did not anticipate NVDA’s bullish streak to continue once it was made public – with Investment research platform Business Quant assessing that their “revenue growth momentum will falter” and Cavenagh Research forecasting “a sharp decline upon [the] mentioned report release” due to missing consensus estimates with regard to sales and earnings by 6%-14%.


Despite expert predictions before its Q1 report release, Nvidia defied expectations by posting stronger-than-expected results – causing its stock price to jump 27% and establish a new record high that same day. However this increase also left behind an open gap which may signal an upcoming correction for NVDA if it falls back below its previous record level ($335).