Join research director Kathleen Brooks NOW to find out what to expect from Nvidia's latest earnings report.
Expectations are for strong demand, and the 26% rally in Nvidia’s stock price so far this year suggests that the market is not pricing in a weak earnings report this evening. We doubt that the market will be too off the mark when it comes to revenue expectations, instead the focus could shift to the cost of curbs to selling chips to China, which came into effect last quarter.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appNvidia’s share price jumped sharply on Tuesday, as risk assets rallied, led by US tech. The stock price is up just a touch in pre-market trading on Wednesday, and we expect the share price to remain calm in the lead up to the results. The average move in the stock 1 day after results for the last 8 quarters has been 8.5%, so the bias is for a move higher in the stock price, if earnings can exceed expectations and $140, the high from February, could be in focus.
Nvidia results will also be important for the overall Magnificent 7, which has experienced a change in leadership in recent weeks. Nvidia was one of the weakest big tech firms for most of this year, however, in the past month its recovery has been rapid. It has gone from zero to hero, and it is now the second best performer in the Magnificent 7, behind Tesla. This is a sign that AI is once again a key driver of big tech stocks, and Nvidia results could determine 1, the strength of AI demand, and 2, whether the recovery in AI stocks can continue.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
