Nvidia is set to announce its earnings after the market closes on Wednesday. The stock, which hit a record high of close to $974 in 2024, is currently trading around $937. The stock has a history of significant price movements following earnings reports, with the potential to rise or fall based on the results. Analysts are predicting earnings of $5.55 per share on revenue of $24.17 billion, while the unofficial Whisper number suggests earnings of $5.80 per share.
The company has shown strong profit growth in recent years, with earnings increasing from $1.45 in 2020 to $4.44 in 2022, dipping slightly to $3.34 in 2023, and expected to rise to $12.96 in 2024, $24.10 in 2025, and $30.52 in 2026. This projected growth puts Nvidia among the companies with the highest growth rates on Wall Street.
Technically, the stock is trading near its all-time high, indicating positive sentiment among growth investors. It is also trading above key moving averages, suggesting strength in the stock. The number of institutional investors holding Nvidia has been increasing, further indicating confidence in the company’s prospects.
Nvidia operates in the graphics, computing, and networking sectors, providing solutions globally. Its products are used in gaming, professional displays, data centers, and automotive markets. The company sells its products to a variety of customers, including OEMs, system integrators, cloud service providers, and automotive manufacturers. Nvidia is also a key player in providing chips for artificial intelligence applications.
During earnings season, it is crucial to observe how the stock market and individual companies react to news and announcements. It is important to manage risks by keeping losses small and reacting to market trends rather than opinions.
The author discloses a current position in Nvidia at the time of writing and notes that the stock has been featured on FindLeadingStocks.com.
In conclusion, Nvidia’s upcoming earnings report is eagerly anticipated, with expectations of strong financial performance. The company’s history of profit growth and technical indicators suggest positive momentum in the stock. Investors should pay close attention to how the market reacts to the news and consider the potential impact on their investment decisions.
Article Source
https://www.forbes.com/sites/adamsarhan/2024/05/22/earnings-preview-what-to-expect-from-nvidia/
