How Far Will Nvidia Drop on Poor Earnings?

By Douglas A. McIntyre Published Nov 18, 7:25AM EST

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Disappointing earnings could be quite a setback for Nvidia Corp. (NASDAQ: NVDA | NVDA Price Prediction) 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

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.