What to Expect from Nvidia’s Quarterly Earnings Report
On August 28th, Nvidia (NVDA) will announce its second quarterly earnings report for the fiscal year, and expectations are high, with a positive report anticipated.
The company has struggled little this year, with its main impediment to growth being manufacturing delays. Even with that issue, the demand for Nvidia products and expertise is still high, and many companies are willing to wait until chip shortages clear in order to get their Nvidia products.
Nvidia’s stock price has dropped 0.72% this morning ahead of the earnings report. The report is scheduled for 5 p.m. later today, and it does not look promising that the stock has fallen before then.
The expected earnings per share for the stock include an increase of 140% from the same time last year, up to 67 cents. The year over year revenue is also expected to increase, with a gain of about 110%, bringing in $28.7 billion. For the current quarter, Nvidia is expected to bring in $31.7 billion.
Why Is Nvidia Stock Down?
The reason for the stock drop could be that many investors feel it is overvalued. The stock price has increased by almost 160% this year so far, and it could go higher. But many believe that Nvidia has skyrocketed so quickly in such a short amount of time that it will undergo a price correction in the near future.
Nvidia is expected to increase its guidance for the rest of the year and beat earnings estimates, according to some firms. So, those investors who are timid about Nvidia’s stock right now could be completely wrong.
The demand for AI-powered products, like the chips that Nvidia makes, has only increased this year. Nvidia is well placed in a hot market that is seeing no indication of abating. We expect this stock to help drive the tech market and a portion of the stock market.
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