24/7 Insights
- Nvidia Corp. (NASDAQ: NVDA) investors are increasingly concerned about the stock.
- Will the anticipated growth in the next quarterly report be enough to boost the share price?
Nvidia Corp. (NASDAQ: NVDA) investors are increasingly concerned about its sharp run-up and have recently sold it down. A look at Wall Street consensus on revenue and earnings shows what professional investors believe, as long as hitting the numbers is enough to keep the stock rising.
So far this year, Nvidia’s share price is up 138% to $118. However, it has been down 8% in the past five days, reflecting anxiety about earnings. In the most recently reported quarter, revenue rose 262% to $26.0 billion. Per-share earnings rose 629% to $5.98.
The Wall Street consensus for the current quarter is for revenue to be $28.5 billion, slightly ahead of the most recently reported quarter. Nvidia earnings are expected to be $0.63 per share, compared to $0.27 a year ago. (The low numbers are due to a 10-for-one stock split.)
Consensus numbers are often inadequate to calm investors, so it is worth looking at the highest estimate among analysts. According to the 38 analysts who posted data at Yahoo! Finance, the high revenue estimate is $30.5 billion and earnings of $0.71. If Nvidia hits those high numbers, it will have a substantial blowout quarter.
As the market seems to be rotating from the mega-cap tech stocks into smaller caps and bonds, Nvidia’s figures may not matter, regardless of how good they are. That will be a time for people who like to buy unexpected dips to jump in.
Be sure to grab a copy of our “The Next Nvidia” report for other great AI stock ideas.
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