SAN FRANCISCO – Nvidia Corp is expected to release its latest quarterly results on Wednesday. Investors are anticipating exceptional performance from the chip giant, which may explain why the stock has been declining in the lead-up to the report.
At this moment, the company’s stock is poised for its most substantial one-day percentage decline since December 27, 2022. If this trend continues, Nvidia could see a significant drop in its market capitalization, marking its largest daily loss ever.
Nvidia shares have skyrocketed by more than 35% so far this year, leading to increased market expectations for the company’s performance. Analysts at HSBC believe that the consensus earnings are approaching their forecasts, indicating a potential challenge for Nvidia in meeting the heightened expectations.
In the upcoming report, analysts are projecting a significant increase in both adjusted earnings per share and revenue for Nvidia’s fiscal fourth quarter. The chip company is also expected to maintain similarly remarkable numbers in the current quarter.
Some analysts are cautious about the high bar set for Nvidia’s performance, suggesting that the potential downside risk may outweigh any upside potential in the stock price.
Investors will be particularly interested in Nvidia’s view on the Chinese market, as the company continues to navigate the impact of Commerce Department restrictions on sales into the country.
Overall, analysts and investors are closely watching for any guidance provided by Nvidia. However, opinions are mixed on whether an impressive report will immediately impact the stock price positively or negatively. Some analysts believe that a near-term pullback in Nvidia shares could be short-lived, while others think the stock may not immediately react strongly to the report.
In conclusion, the upcoming report is highly anticipated, and investors will be keeping a close eye on Nvidia’s performance and guidance for the future.