Nvidia Earnings Preview
What It Means For $NVDA Stock And The Whole Market
Nvidia Earnings Preview
Nvidia’s upcoming earnings report is a critical event for investors and traders, reflecting its substantial influence on the semiconductor industry and broader market dynamics.
As a powerhouse in the artificial intelligence (AI) sector, Nvidia’s performance is under intense scrutiny, with high expectations for robust growth and forward-looking guidance. This report arrives at a crucial juncture as the market evaluates the sustainability of Nvidia’s high valuation following its impressive recent performance.
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Analysts are optimistic and looking for continued growth in EPS and revenue. The outcome of this earnings report could either reinforce investor confidence or prompt a reevaluation of Nvidia’s market standing.
Key Factors —
Revenue growth and guidance — Analysts forecast an 84% year-over-year increase to $33.07 billion, primarily driven by AI infrastructure demand — essential for validating the current valuation and sustaining investor confidence.
Earnings per share (EPS) — Projected at $0.74 for the quarter, EPS estimates indicate high hopes for substantial growth from the previous year.
Data center revenue - Expected to hit a record of more than $29 billion, underscoring its role as a significant growth driver.
Blackwell AI chips — This has been a key revenue driver. Positive updates are critical, as they could provide insights into future revenue streams and address potential supply constraints.
Market Influence — Nvidia’s results will influence market sentiment amid recent shifts towards fintech and other emerging sectors.
The options market is pricing in approximately a $13 move. Here’s the chart to show the potential impact in either direction.
The stock trades in a solid uptrend above all the key moving averages. After making new highs last week, it has been consolidating ahead of the report, even dipping below the 21-day MA and the June pivot highs briefly last week. So it's not extended and could have plenty of room to run higher.
The options implied move higher would do the job, carrying the stock well into new highs again. While the same move lower would have it testing its 50-day MA.
The results will be announced at 4:20 PM this evening. They have a history of delivering “beat and raise” announcements. (Beating EPS estimates and raising future guidance)
Will it be enough?
Here are some more tidbits courtesy of this cheat sheet from T3 Live.
The Disclosures
***This is NOT financial advice. This is NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
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