Investors Beware: Nvidia's Earnings Set to Shock the Market, Here's What You Need to Know...

Well, as the market takes a massive dump in today's trading, investors are clenching their teeth, waiting to see what Nvidia’s earnings report on August 28th is going to throw at them. Spoiler: It could either reignite the tech boom, or have it crashing harder than a drunk on a bender. 

(Source: Giphy) 

So clearly the stakes are high, and everyone knows it. Especially since Nvidia has been riding the AI wave harder than my stripper aunt in Oklahoma rides…. Horses. Yet, with their new Blackwell AI chip being delayed, and clients turning to other alternatives for the time being, the pressure is definitely on to see if Nvidia’s seen more growth, or if the AI trend is indeed getting close lined.

(Source: Market Insider) 

Now we’ll get into the nitty gritty in a moment, but before we jump into the details, let’s take a quick look at the instant replay. As we all know, It’s no secret Nvidia has been on one hell of a run. Over the past year, the stock’s ripped up 170%, and in the last five years, it’s exploded by 3,000% resulting in a $3 trillion valuation. Which is not only impressive, but it legit sparks FOMO in every degenerate investor's mind, rethinking every investment decision they’ve put over Nvidia. (Including me). 

For instance, while the stock has been roaring louder than the friggin Cocaine Bear itself, their actual financials have been slamming Wall Street estimates left, right, and twice on Sunday over the past three quarters. 

(Source: Giphy) 

Back in October 2023, Nvidia nailed EPS and revenue estimates by +18.73%, and +12.47%. In January of this year, Nvidia once again topped EPS and revenue with a cool +11.40% and +7.57% beat, while April’s earnings have shown a nice +9.81% and +6.04% beat on EPS and revenue. 

However, while the growth over the last three quarters definitely signals a bit of fatigue in Nvidia’s numbers, they still killed Wall Street projections while posting a Johnny Football highlight reel in YoY numbers. 

(Source: Giphy) 

For example, as of April 2024 (Nvidia’s last earnings report), revenue skyrocketed +262.12% as Nvidia posted $26.04 billion. On the other hand, Net income, Diluted EPS, and operating income catapulted 628.39%, 650%, and 101.14%, respectively. (I’m legit feeling the FOMO writing this right now). In addition, Nvidia’s quest of actually making money also soared with net profit margin pumping +101.13% YoY as it hit 57.14%. Legendary… 

(Source: Market Watch)

But with that said, while Nvidia is obviously killing it in the numbers game, what does Wall Street think leading into Wednesday’s big release? Well as of right now, analysts are calling for a massive 75% revenue jump, pushing Nvidia’s Q3 revenue to around $31.69 billion - which is impressive, but still a slowdown from their previous “holy sh*t” growth rates as mentioned above. 

Obviously, the main concern is how Nvidia has handled the Blackwell chip delays, but with strong signals from companies like Taiwan Semiconductor and AMD suggesting that demand for AI products is still off the charts, the belief that Nvidia meeting the demand with its other arsenal of chips is high.  

(Source: Wall Street Journal) 

Which is why according to Wedbush analyst, Dan Ives, Nvidia is expected to deliver “another masterpiece quarter” due to more AI demand as he’s upgraded his price target to a nice $340 per share, indicating a massive +174.77% upside. 

(Source: Benzinga) 

Now of course, while Dan Ives is looking to be the most bullish analyst of recent upgrades, Morgan Stanley still claims Nvidia “remains their Top Pick” as their price target of $144 hints for +10.43% upside. In total though, this comes a tad shy of the consensus analyst price target of $173.65 per share labeling an impressive +36.56% upside from current levels. 

(Source: Street Insider) 

Yet even with all of that optimism said, rest assured that investors are going to be scrutinizing every word from Nvidia’s management, looking for any hint of trouble. Meaning, if there’s even a whiff of bad, it could spark a massive-sell off (as we saw earlier last week when Nvidia plunged more than -3%, dragging the Nasdaq down with it).

(Source: Giphy) 

So in the end, as we head into August 28th, keep your eyes peeled. With Nvidia having a nice 6.16% weighting in the S&P 500, the market will definitely get wild in either direction, so whether you’re currently holding Nvidia, feeling the FOMO, or watching from the sidelines, this is one earnings you don’t want to miss. 

At the time of this writing, Nvidia is down -2.28% on the day, (up +162.34% YTD)

Stocks.News holds no positions in companies mentioned in the article.