Nvidia beats Q1 estimates as technicals weaken

Nvidia reported stronger-than-expected first-quarter results on May 20, with revenue of $81.6 billion and adjusted earnings per share of $1.87. Net income for the quarter was $58.3 billion and gross margin was about 75%. Data Center revenue was $75.2 billion and Edge Computing revenue was $6.4 billion.

The company’s fiscal 2026 10-K shows one direct customer accounted for 22% of revenue and that inventory and supply commitments on the balance sheet rose to $95.2 billion.

On the price and volume charts, Nvidia shares peaked at $236 on May 14 and were trading near $223 after that high. The Chaikin Money Flow, a volume-weighted measure of buying and selling pressure, fell from a peak of 0.57 on April 28 to 0.09 by May 21 while the share price moved higher into the May 14 peak. The Relative Strength Index read 61.85 versus a signal line at 62.97; between late April and the May 14 peak the RSI formed lower highs while price made higher highs. A daily close below $226 would confirm the RSI divergence by standard technical criteria.

Options activity showed increased demand for downside protection around the report. The put-call volume ratio rose from 0.38 in the session before the May 20 print to 0.46 on the day of the report. The open-interest put-call ratio was about 0.79 versus roughly 0.80 before the earnings release. After the February 25 earnings report, the put-call volume ratio increased from about 0.55 to 0.69 and the stock moved from roughly $195 to $183 in the following weeks.

Price action since the March 30 swing low at $164 produced a 44.05% advance to the May 14 peak at $236. That price move forms the pole of an early-stage consolidation that can appear as a bullish flag on charts. If the consolidation resolves higher, common Fibonacci extension levels project targets at $245, $253, $262, $274 and $289.

For a breakout above the consolidation to be treated as a confirmation, the stock would need a sustained close above $227, followed by reclaiming $234 and the $236 peak on higher volume. On the downside, $226 is the immediate technical pivot. Failure to regain $226 would leave $217 as the next support level. A break under $217 would weaken the flag setup, and a drop below $194 would largely invalidate the bullish pattern.

The decline in Chaikin Money Flow, the RSI divergence and the shift in put-call volume all occurred in the days around the May earnings report. Market participants are watching the $226 to $236 range for price behavior that would indicate whether the recent consolidation resolves toward the Fibonacci targets or toward lower support levels.