24/7 Wall St. Insights
- Disappointing earnings could be quite a setback for Nvidia Corp. (NASDAQ: NVDA) stock.
- Other mega tech stocks have suffered sharp declines after falling short of expectations.
- Also: 2 Dividend Legends to Hold Forever.
Will Nvidia Corp. (NASDAQ: NVDA) earnings be good or not? What about its stock? The results must be better than expectations. Companies that disappoint often have shares punished immediately after the announcement.
Bloomberg reports that Nvidia won’t miss earrings. However, there is another side of the argument. According to The Information, “Nvidia is grappling with new problems related to its much-anticipated Blackwell graphics processing units for artificial intelligence: how to prevent them from overheating when connected in the customized server racks it has designed.”
Nvidia has already taken two nosedives this year, an example of how it can fall in a short period. The first was from $132 in July to $100 in early August. More recently, Nvidia dropped from $131 in August to $107 in early September.
As far as a one-day drop among mega techs goes, Microsoft Corp.’s (NASDAQ: MSFT) recent earnings miss took it down 6% in a day. When Amazon.com Inc. (NASDAQ: AMZN) missed numbers earlier this year, the stock fell 9% in a day. The biggest single-day drop by a mega tech in the past two years is when Meta Platforms Inc. (NASDAQ: META) fell 22% after missing earnings in October 2022.
Nvidia forecasts revenue for the quarter it is about to release will be $32 billion. That is up between 80% and 85% from the same period a year ago. If it misses that figure, its stock could drop by a quarter, which is a major concern among mega-cap stocks.
Nvidia Price Prediction and Forecast
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
