Nvidia is soaring on earnings. Here's where two traders stand on the stock

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Nvidia's return to revenue growth story has already been seen: Investing pro

One of the top-performing chipmaker stocks just reported earnings.

Nvidia, which has raced 7% higher in the past week and nearly 16% so far this year, topped earnings estimates in its report Thursday afternoon. Its shares were up 6% in extended trading. 

Its longer-term charts show the rally could have much farther to go before stopping, according to Todd Gordon, managing director of Ascent Wealth Partners.

"The uptrend is well intact. I like the longer-term chart here that follows Nvidia's growth. You can find a very nice parallel channel here, and you can see that we're sort of midrange, we're not yet at upper resistance which, believe it or not, comes in from a technical point of view at $500," Gordon said on CNBC's "Trading Nation" on Thursday.

An increase to $500 implies 84% upside from where the stock traded on Thursday afternoon. That would also see it break through its record high of $292 set in October 2018.

"We're within a stone's throw of the old high," said Gordon. "It's done extremely well against AMD's launch here. I think this is a hold, I am long the stock personally, I'd like to continue it through those highs."

Gina Sanchez, CEO of Chantico Global, says she's watching for a return to revenue growth in this quarter, but has her eyes on another metric, too.

"We're also looking for some guidance on whether or not coronavirus will have any effect on their supply chain. If you look at sort of the return to revenue growth story that has already been seen, we're seeing evidence of that. We have seen a resurgence of their gaming and their data center business, that's over three-quarters of their revenues, and we've seen them defend very well against the AMD launch," Sanchez said during the same segment.

Analysts surveyed by FactSet anticipate 34% sales growth in its January-ended fourth quarter. In the same quarter a year earlier, sales contracted by 24%.

Sanchez sees another problem that's keeping her cautious here.

"They're very highly priced now, they're trading at over almost twice their normal PE, if you look historically. That's the challenge," she said.

Nvidia trades at 37 times forward earnings. That's off a near-term bottom of 22 times back in June 2019.

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