How Much Traders Expect Nvidia Shares to Move After Earnings
30 minutes ago
Nvidia stock is expected to move about 6% in either direction by the end of the week, according to an analysis of options pricing data.
Nvidia shares have risen about 25% in the past month, putting the stock up about 2% since the start of the year. Technical analysis suggests bullish momentum is on Nvidia’s side heading into Wednesday’s report.
It’s been a year since Nvidia shares rose on a quarterly report. The stock popped more than 9% in May 2024 after the company blew past earnings expectations and announced the 10-for-1 stock split that paved the way for it to join the blue-chip Dow Jones Industrial Average.
Nvidia’s earnings have continued to top estimates since then, but they’ve failed to impress investors. Shares fell after each of Nvidia’s three most recent reports, including nearly 9% in February despite the results containing ample evidence that demand for its AI-enabling chips remained as strong as ever.
What Analysts Expect from Nvidia Earnings
55 minutes ago
Analysts on average expect Nvidia to report quarterly revenue of $43.28 billion, 66% higher year-over-year, and adjusted net income of $21.13 billion, or 86 cents per share, up from $15.24 billion, or 61 cents per share, a year earlier.
Wedbush analysts said the chipmaker will continue to be a beneficiary of huge investments in AI infrastructure from hyperscalers like Meta (META), Google parent Alphabet (GOOGL), Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT). Spending on AI “in particular ends up flowing to [Nvidia] which supplies a disproportionate amount of the AI server value,” the analysts said.
Analysts may ask CEO Jensen Huang about sales to China after the Trump administration earlier this year imposed tighter export controls. Nvidia has warned of a $5.5 billion charge due to restrictions on its H20 chip, and Huang reportedly called the export curbs a policy “failure” that is driving China to accelerate development of its own AI chips.
Oppenheimer analysts expect the impact of the restrictions to be relatively modest. “We see upside … despite the loss of H20 sales to China,” the analysts said, noting that the country now makes up just 5% of Nvidia’s total sales.
Both Wedbush and Oppenheimer have “outperform” ratings for Nvidia stock, along with price targets of $175. Of the 18 analysts tracked by Visible Alpha, 16 have a “buy” or equivalent rating for Nvidia stock, alongside two “hold” ratings. Their consensus price target is near $164 would suggest about a 20% upside from Nvidia’s current share price.
Nvidia shares were up nearly 1% recently, trading just below their highs for the session.