Nvidia Earnings Preview: Major Stock Movement Expected Post-Report on August 28
Nvidia Corporation (NASDAQ: NVDA) is set to release its highly anticipated earnings report after the market closes on August 28. Investors and market analysts are gearing up for a significant stock price movement, with options data suggesting a potential 10% fluctuation on August 29.
Market Sentiment Ahead of Earnings Report
To capture the pulse of the market, Investing.com is conducting a poll on X. Preliminary data from Evercore ISI indicates that 57% of investors believe Nvidia's stock will settle between $120 and $140 by the end of trading on August 29. Additionally, 27% predict the stock will exceed $140, while 14% expect it to range between $90 and $120. Only 2% foresee a dip below $90.
Impact of Product Delays and Market Response
Despite delays in Nvidia's Blackwell product line, the market has largely shrugged off these concerns, interpreting them as a buying opportunity. Strong demand for Nvidia’s H200 and H20 products is expected to offset any potential revenue shifts from Blackwell to later quarters.
"We expect initial volumes in the October quarter, as the initial product is functional but with somewhat lower yields, and we still expect a volume ramp of the next revision of silicon through January - all of which is still within the broad brush strokes of guidance," noted Morgan Stanley analysts.
Future Outlook and Analyst Insights
Current demand signals for Nvidia's offerings remain robust. While precise projections are challenging, the trend is expected to continue. Despite initial delays with Blackwell, management is likely to reassure investors that production is on track, with a significant ramp-up anticipated towards the fiscal year's end.
"NVIDIA remains our Top Pick, and regardless of expectation issues, the fact that headwinds (including China export controls last year, challenges in bringing up powered data centers, potential pauses in front of a clearly more capital-efficient Blackwell, and now a tactical delay in new products) simply do not affect the company's strong momentum drives our thoughts," analysts concluded.
Earnings Expectations
Nvidia is expected to report earnings of 64 cents per share on revenue of $28.68 billion.
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Analysis: Breaking Down the Impact of Nvidia's Earnings Report
What This Means for Investors
- Stock Price Movement: The market is bracing for a 10% swing in Nvidia’s stock price following the earnings report on August 28. This could present both opportunities and risks for investors.
- Investor Sentiment: The majority of investors are optimistic, with 57% expecting the stock to settle between $120 and $140. This indicates strong confidence in Nvidia’s performance despite recent product delays.
- Product Delays: While delays in the Blackwell product line initially raised concerns, the market sees this as a temporary issue. Strong demand for other products like H200 and H20 is expected to mitigate any revenue impact.
- Analyst Confidence: Analysts remain bullish on Nvidia, emphasizing that recent headwinds are unlikely to derail the company's upward trajectory. This sentiment is crucial for maintaining investor confidence.
- Earnings Expectations: Nvidia is projected to report earnings of 64 cents per share on $28.68 billion in revenue. Meeting or exceeding these expectations could further boost investor sentiment and stock performance.
How This Affects Your Finances
- For Current Investors: If you already own Nvidia shares, this earnings report could lead to significant price movements. Be prepared for volatility and consider your long-term strategy.
- For Potential Investors: If you’re looking to invest in Nvidia, the post-earnings period could offer a buying opportunity, particularly if the stock experiences a dip.
- For Options Traders: The anticipated 10% price swing presents opportunities for options trading strategies, like straddles or strangles, to capitalize on the volatility.
Understanding these insights can help you make informed decisions about your investments and potentially capitalize on the market movements following Nvidia's earnings report.