Nvidia Corporation, the world’s leading GPU chip design company, is poised to announce its latest quarterly earnings after the bell on Wednesday, and market watchers are keenly focused on the results—and what they will mean for the company’s stock value—especially regarding the H200 chips and the transition toward the new Blackwell architecture.
Nvidia’s recent history of earnings has seen remarkable growth, with a staggering 265% increase reported in fiscal Q4. The performance expected to be repeated in large part due to AI-related spending by major customers like Meta Platforms, Alphabet, and Microsoft, meaning Nvidia could see year-over-year revenue growth to top 200% for a third straight period, as CNBC reported. (Meta alone raised its 2024 capital expenditures forecast to $35 billion to $40 billion to accelerate AI infrastructure investments.)
Impact on stock price: It’s all about expectations
Nvidia’s strong earnings results have recently led to significant stock price increases both before and after the earnings announcements. For the stock to rise after the report’s release today, the company will likely have to at least comfortably beat Wall Street’s estimates for the quarter and issue guidance for the next quarter that’s notably higher than analysts are projecting.
However, a slowdown in “AI stock mania” and a more cautious market could see a post-earnings selloff, even if the quarter are strong.
“We can expect to see more strong results from Nvidia, yet the bar keeps moving higher in terms of performance expectations,” says eMarketer senior analyst Jacob Bourne. “Investors want to see AI chip magic, and Nvidia might not be able to deliver that every quarter. A less-than-blockbuster report doesn’t spell doom for AI demand, it just means that there are other economic factors at play.”
As of Wednesday before the markets opened, Nvidia shares were up 98% year to date, far surpassing the S&P 500 index’s 11.9% gain. The stock’s long-term performance is even more impressive, transforming a $5,000 investment into almost $1 million over the past decade as of April 29.
We’ll have full coverage of Nvidia’s earnings after the closing bell.
Ak chcete pridať komentár, prihláste sa
Ostatné príspevky v tejto skupine
When I open up Threads, I often come across two-day old posts from strangers, which the app shows me because the people I follow replied to them yesterday. It’s not exactly ideal.
“This
Plaid, which provides the technology that lets you swiftly connect your bank account to thousands of fintech products, is making the onboarding process even simpler.
<figure class="wp-block
BeReal’s days of social media dominance are long gone. Th
Apple used Monday’s keynote at the annual WWDC event to unveil a roster of new software developments, product upgrades, and most importantly—their long-awaited AI play. Fast Company’s own
Adrian Perkins was running for reelection as the mayor of Shreveport, Louisiana, when he was surprised by a harsh campaign hit piece.
The satirical TV commercial, paid for by a rival pol
A Chinese state-run TV channel’s YouTube presence has been taken offline after repeatedly infringing the copyright of a California-based composer.
Kerry Muzzey’s music has been played in
