Live Chat
Wall Street bets on blowout quarterly Nvidia earnings report

Wall Street betting on blowout Nvidia earnings on Wednesday

Wall Street is betting on a blowout quarterly Nvidia earnings report on Wednesday, with the California-based firm’s stock nearing record highs as investors look for evidence that the AI chipmaker can maintain its explosive growth and stay ahead of rivals.

The results will be the latest test for Wall Street's picks-and-shovels trade, which has made Nvidia the biggest winner of the generative AI boom. Its chips are essential in powering technologies from Google's Gemini to OpenAI's ChatGPT.

Will Rhind, founder and CEO of GraniteShares, which runs an ETF that invests in the chip firm, told Reuters on Monday:

"There is a lot riding on Nvidia's earnings. It is the most important stock in the sector”.

Since the start of 2023, Nvidia shares have surged more than six-fold, making it Wall Street's third-most valuable firm, worth over $2.30 trillion.

At the time of writing on May 20, Nvidia stock ticked up by 1.35% in premarket trading at $937.30.

A stock surge of over 85% in 2024 has helped lift the broader market, with Nvidia now accounting for 5% of the S&P 500 index, according to LSEG data.

The last Nvidia earnings call, which took place in February, saw the stock surge by over 16%, adding $227 billion to the firm’s market cap in a single day.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Currency Search
Currency
Index
Shares
ETFs
Bonds
Crypto
Commodity

Instrument

Search
Clear input
Occidental
Siemens
Morgan Stanley
GSX Techedu
Marston's
Alibaba
Skillz Inc
Macy's
Lemonade
Lululemon
Plug Power
Amazon.com
Verizon
Thermo Fisher
Mondelez
General Motors
LVMH
IAG
Cinemark
PETROCHINA
Royal Bank Canada
Anglo American
F5 Networks
Nikola Corporation
Zoom Video Communications
Air France-KLM
Comcast
UniCredit
The Cheesecake Factory
Barrick Gold
Bayer
Toro
Kuaishou
Gen Digital Inc
Tilray
Xiaomi
SMCI
Wish.com Inc
Adobe
DISNEY
Coinbase Inc
UiPath Inc
T-Mobile
Rio Tinto
Schlumberger
Invesco Mortgage
Hammerson
Volkswagen
Sartorius AG
ROBLOX Corp
ChargePoint Holdings Inc
UPS
Pinterest Inc
Continental
Jumia Technologies
Medtronic
PayPal
Twilio
Freeport McMoRan
UnitedHealth
SIG
Tesla
Lyft
Boeing Co
Annaly Capital
Santander
Teladoc
Li Auto
CrowdStrike Holdings
Deere
Fedex
Naspers
ProSiebenSat.1
Bilibili Inc
Costco
New Oriental
NVIDIA
Iberdrola
Gilead
American Express
Apple
Airbus
GoPro
Chevron
HSBC HK
Two Harbors Investment aration
easyJet
Inditex
BlackBerry
Anheuser-Busch Inbev
Deliveroo Holdings
Hubspot
Applied Materials
GameStop
British American Tobacco
Trade Desk
McDonald's
AMC Entertainment Holdings
Adidas
AIA
Bristol Myers
Novavax
TUI
Fresnillo
Shell plc (LSE)
Nasdaq
Ceconomy
Lithium Americas Corp
Rivian Automotive
Qorvo
MercadoLibre.com
Coca-Cola Co (NYSE)
HDFC Bank
Roku Inc
Infinera
Arista
Total
JnJ
Dave & Buster's
PG&E
ON Semiconductor
Diageo
XPeng Inc
ASML
Vodafone
Airbus Group SE
Campari
Telecom Italia
Glencore plc
HSBC
ZIM Integrated Shipping Services Ltd
Kraft Heinz
Spotify
Aurora Cannabis Inc
Etsy
Goldman Sachs
Norwegian Air Shuttle
Abbott
Snap
Linde PLC
Blackstone
Cellnex
Tencent
Barclays
Virgin Galactic
JP Morgan
Allianz
RTX Corp
Taiwan Semi
Wal-Mart Stores
Intel
DoorDash
Wayfair
SONY
II-VI
Norwegian Cruise Line
BioNTech
Palantir Technologies Inc
CNOOC
Cisco Systems
Electrolux
ALIBABA HK
Robinhood
Vonovia
British American Tobacco
SAP
Ford
Cameco
Peloton Interactive Inc.
Toyota
Amgen
AT&T
Infosys
Starbucks
Lloyds
Qualcomm
Canopy Growth
3D Systems
CarMax
LUCID
Eni
AMD
Target
IBM
FirstRand
Lumentum Holdings
Alphabet (Google)
Workday Inc
ASOS
Conoco Phillips
Moderna Inc
Trump Media & Technology Group
Fuelcell
MerckCo USA
Salesforce.com
Hermes
BASF
AstraZeneca
Christian Dior
Broadcom
Oracle
Vipshop
CCB (Asia)
Nio
Block
Uber
Accenture
Meta (Formerly Facebook)
Berkshire Hathaway
Wells Fargo
Blackrock
Rolls-Royce
Pfizer
Microsoft
Home Depot
Mastercard
Lufthansa
Marriott
AbbVie
China Life
Baidu
Eli Lilly
DeltaAir
Chipotle
BP
General Electric
eBay
Quanta Services
Netflix
Micron
Visa
Golar LNG
ADT
JD.com
American Airlines
Porsche AG
Palo Alto Networks
Teleperformance
Lockheed Martin
Upstart Holdings Inc
Delivery Hero SE
Airbnb Inc
Nel ASA
GoHealth
Shopify
Aptiv PLC
Bank of America
PepsiCo
Philip Morris
Exxon Mobil
Procter & Gamble
Beyond Meat
Snowflake
L'Oreal
Sea
Porsche
Deutsche Bank
Nike
Unilever
CAT
Prosus N.V.
Unity Software
Citigroup
Upwork Inc.
Vir Biotechnology

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

Stock trades at close to 35x expected Nvidia earnings

Analyst expectations for Nvidia's future earnings appear to have climbed even faster than the company’s shares. The stock last traded at about 35 times expected earnings, down from a peak of over 80 last June, according to LSEG data.

Nvidia's staggering valuation might yet have room to grow. "It is undervalued relative to where forecasts are going," GraniteShares’ Rhind told Reuters.

Analysts on average expect Nvidia to report a 242% jump in revenue to $24.60 billion for the fiscal quarter ending in April, according to LSEG data cited by Reuters as of May 17. Sales in the second quarter are expected to rise almost 97%, the data showed.

Analysts project a net income of $12.83 billion in the first quarter, up from $2.04 billion a year ago.

Nvidia earnings in focus

Nvidia revenue growth expected to decelerate in upcoming quarters

For several quarters, demand for Nvidia's AI processors has outpaced the number of chips that its contract manufacturer, Taiwan Semiconductor Manufacturing Company (TSMC), has been able to produce.

Investors are also concerned about Washington's restrictions on exports of Nvidia's top-tier AI chips to China.

Investors await updates on chips Nvidia is developing for the Chinese market after export curbs reduced its revenue share from China to about 9% of sales in the fourth quarter, down from about 22% in the third quarter.

Nvidia is also facing tough year-over-year comparisons after several quarters of three-fold revenue growth last year.

BNP Paribas Exane analyst David O'Connor explained in a comment to Reuters:

“As the numbers get bigger, you're up against the law of big numbers, and that percentage beat starts to become less and less”.

Rising prices of high-bandwidth memory chips used in its AI semiconductors could also dent margins, with analysts expecting an adjusted gross margin of 75.8% in the second quarter, compared with expectations of about 77% in the first quarter.

Overall, analysts appear confident about Nvidia's growth as technology giants from Microsoft to Meta Platforms boost spending on data centers by billions of dollars in the race for generative AI.

Global spending on cloud infrastructure services is projected to increase by 20% in 2024 compared to 18% in 2023, according to research firm Canalys.


When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Thursday, 19 December 2024

Indices

Analyst revises Amazon stock forecast following major 'moonshot' initiative

Thursday, 19 December 2024

Indices

Stock market today: 3 bullish stocks that J.P. Morgan Just Upgraded

Thursday, 19 December 2024

Indices

Bitcoin news today: Jerome Powell Says Fed Won’t Hold Bitcoin

Thursday, 19 December 2024

Indices

Gold performance and prediction: how high could gold price go?

Live Chat