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    Is Nvidia's most recent earnings report expected to exceed expectations?


    Finance Outlook India Team | Wednesday, 22 May 2024

    Wall Street is ready for big news as the chip giant is ready to release a hefty earnings report. Nvidia's results are coming up soon. Expectations are rising as Nvidia gets ready to unveil amazing numbers, and the tech giant is on track for a record-breaking quarter in this highly anticipated earnings report.

    Is the semiconductor king going to rule supremely? That is still the great issue. As the clock ticks down to Nvidia's earnings, the market is expecting spectacular results that might be a quarter that changes everything. As Nvidia's earnings report draws near, investors are holding their breath, waiting to see if another revenue explosion is in store.

    The AI investment darling of the world, Nvidia (NVDA), is expected to report results on Wednesday. In light of the growing demand for AI, the chipmaker is expected to post yet another quarter of good profitability and revenue growth. Nvidia's share price ($953) has risen by 200% and almost 100% during the previous 12 months and year to date, respectively, with a market capitalization of over 2.38 trillion dollars.

    Nvidia's sales and outlook are expected to surpass analysts' projections by more than $1 billion, which may result in a notable increase in the company's stock price. Most experts predict that Nvidia will generate $24.74 billion in revenue and earn $12.91 billion in net income, or $5.19 per share. Nvidia reported $22.1 billion in quarterly sales and $12.28 billion in net income, or $4.93 per share, for the fourth quarter of fiscal 2024.

    "Nvidia's quarterly results, which were released on Wednesday, have the potential to influence U.S. stock markets and businesses involved in the rapidly developing artificial intelligence space. According to Sheraz Mian, director of research at Zacks, "the semiconductor company at the center of the excitement over AI's business potential is expected to report a massive jump in revenue and profit for its fiscal first quarter."

    Because of its dominance in the AI industry and the high demand for its GPUs, Nvidia is predicted to post great profitability once again.

    "The highly anticipated Nvidia earnings announcement has arrived." According to José Torres, Senior Economist at Interactive Brokers, "the options market is anticipating a sharp move in the bellwether name after the company releases its earnings results, which may embolden equity bulls or awaken the bears from hibernation."

    But according to Nigel Green, CEO of deVere Group, the path ahead for NVDA stock could not be as profitable for investors as it has been in the past. But compared to other quarters, the projected share price increase—which we estimate to be around 8%—is probably not going to be as significant. This lower expectation is a reflection of the market's already high pricing for most of Nvidia's impressive performance and quick expansion.



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