Nvidia Is Expected to Nearly Double Revenue. Its Stock Is Still 11 Percent Below a Record
Before rebounding Tuesday, the stock had declined seven trading sessions in a row for its longest losing streak since 2022.
Jensen Huang. Illustration: Inc; Photos: ; Adobe Stock
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The whole world expects Nvidia to report record earnings, but the stock has sold off into the news anyway.
Before rebounding Tuesday, the stock had declined seven
Before rebounding Tuesday, the stock had declined seven trading sessions in a row for its longest losing streak since 2022. While it’s still up more than 12 percent this year, it’s hovering 11 percent below its all-time high ahead of Wednesday quarterly results.
Nvidia has entered five of its last 16 earnings dates on a worse five-day run and five on a deeper drawdown. Meanwhile, its median distance below a record high ahead of earnings is about 6.5 percent.
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One contributor to the recent weakness was the Bloomberg report earlier this week detailing how Nvidia is telling customers to expect AI service prices to increase more than 15 percent due to rising memory costs.
It’s true that this raises questions about future
It’s true that this raises questions about future margins and financing risk, but zooming out to revenue and operating profit numbers provide useful context of just how dominant Nvidia has been since the launch of ChatGPT in November 2022.
Indeed, Nvidia has cleared the midpoint of its own revenue guidance for 15 quarters in a row. Analyst estimates see the company reporting between $2.05 and $2.13 a share in the latest quarter, and not one Wall Street forecast has been cut over the last four weeks.
Source: www.inc.com
