NVIDIA Earnings Call Expectations and Stock Price Predictions
Earnings Call Expectations
NVIDIA is set to report its fiscal 2025 second-quarter earnings on August 28, 2024, and the market is eagerly anticipating the results. Here are the key expectations:
- Revenue and Earnings Per Share: Analysts project a year-over-year revenue increase of 109.1% to $28.24 billion and earnings per share (EPS) of $0.63, representing a 133.3% year-over-year increase.
- Data Center Segment: The data center segment is expected to be a star performer, with revenue forecasted to reach $25.19 billion, more than doubling year-over-year.
- Blackwell AI Platform: Investors are keenly awaiting updates on NVIDIA's next-generation Blackwell AI platform, despite recent reports of potential delays.
Market Impact and Sentiment
- Market Influence: NVIDIA's performance is seen as a bellwether for the tech sector, particularly the "Magnificent Seven" stocks. A strong earnings report could further fuel the AI-driven rally in tech stocks, while any signs of softness might lead to a rotation out of these high-flying names.
- Investor Sentiment: Despite high expectations, investor sentiment remains positive, with about 73.7% of investors expecting NVIDIA to beat estimates. The stock has surged 26.8% since the last earnings release and is trading 51% above its 200-day moving average.
Stock Price Predictions
- Technical Analysis: Technical indicators suggest a bullish outlook, with expectations that NVIDIA could push towards a new all-time high around $157 post-earnings. Key support levels include $115, and resistance is at the previous all-time high of $140.76.
- Volatility: Options-market pricing suggests traders are expecting a significant move, with a potential swing valued around $298 billion from the after-the-bell update.
- Analyst Views: Some analysts believe that regardless of the performance, reactions will be extreme due to the psychological nature of the market. Strong figures are anticipated due to NVIDIA's crucial role in AI infrastructure.
Risks and Considerations
- Product Delays: Any news on delays with the Blackwell GPUs could significantly impact future growth prospects and investor sentiment.
- AI Demand Outlook: Investors are keen to hear if the AI boom will continue strong or if NVIDIA sees signs of a slowdown, which could impact future expectations.
- Profit Margins and Data Center Revenue: Focus will be on profit margins from AI GPUs and data center revenue, as any deviation from expectations could be surprising.
Conclusion
NVIDIA's upcoming earnings report is highly anticipated and could have a profound impact on its stock price and the broader tech market. With strong expectations and a bullish technical outlook, the stage is set for what could be a defining moment in NVIDIA's growth story.
References: NVIDIA's Q2 Earnings: A Pivotal Moment for the AI Chip Giant: Nvidia (NVDA) Earnings Expected to Grow: What to Know Ahead of ...: Nvidia earnings key to market rally after Fed lays rate cards on table: NVDA stock price prediction before earnings Aug 28, 2024. Watch ...: Nvidia earnings: Rationality is out the window, analyst says
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