Nvidia beats Q1 estimates; flows, momentum and options shift

Nvidia reported first-quarter revenue of $81.6 billion and adjusted earnings per share of $1.87 on May 20, beating consensus estimates of $78.8 billion and $1.76. Data-center revenue was $75.2 billion and edge computing revenue $6.4 billion. Gross margin was about 75% and reported net income was $58.3 billion. Nvidia’s FY26 10-K shows one direct customer represented 22% of revenue and lists inventory and supply commitments of $95.2 billion.

Shares peaked at $236 on May 14 and traded near $223 after the May 20 report. Price and volume indicators changed during the run-up to the May peak.

Chaikin Money Flow, an indicator that measures volume-weighted buying and selling pressure, fell from 0.57 on April 28 to about 0.09 by May 21 while the stock moved higher into the May 14 high. That pattern represents a divergence between price and the volume-based measure of accumulation.

The Relative Strength Index showed lower highs between April 27 and May 14 while the stock made higher highs. The RSI reading stood near 61.85 against a signal line of 62.97. A sustained price move below $226 would align the chart with the RSI pattern.

Options activity shifted toward more put buying after the earnings release. The put-call volume ratio was about 0.38 before the May 20 report and rose to roughly 0.46 on the day of the print. Open-interest put-call ratio held near 0.79 versus about 0.80 pre-earnings. Around the late-February results, the put-call volume ratio increased from 0.55 to 0.69 and the stock moved from about $195 to $183 in the following weeks.

On the price chart, the advance from the March 30 low of $164 to the May 14 high of $236 forms the pole of a flag pattern. If the pattern resolves to the upside, common Fibonacci extension levels would place potential targets at about $245, $253, $262, $274 and $289. A sustained close above $227, followed by reclaiming $234 and clearing $236 on higher volume, would be required to register a breakout. On the downside, failure to hold $226 would expose $217, and a break below $194 would invalidate the flag pattern.

Market participants are monitoring price, volume and options flows to track whether volume-weighted buying returns or whether momentum and option hedging continue to shift in the current direction.