Nvidia will announce its third-quarter earnings after market close on Tuesday. It’s announcement will complete the Magnificent 7 earnings for the quarter. Yesterday the company’s stock reached a record high of $504.09 per share. The current stock price is trading down $3.93 or -0.79% of $500.05. The gains this year have been driven by the AI-driven sales where Nvidia is leading the charge. The stock is up 242% in 2023.
Expectations for Nvidia are high, with Wall Street predicting significant growth compared to the same quarter last year:
- Revenue: Expected at $16.1 billion versus $5.93 billion in Q3 last year.
- Adjusted EPS: Expected at $3.36 versus $0.58 in Q3 last year.
- Data center revenue: Expected at $12.82 billion versus $3.83 billion in Q3 last year.
- Gaming revenue: Expected at $2.7 billion versus $1.57 billion in Q3 last year.
Additionally, investors are keen on Nvidia’s revenue outlook for the fourth quarter, which is anticipated to be around $17.8 billion. The company has previously exceeded expectations in 2023, particularly with its second-quarter results and forward guidance.
However, the stock experienced some volatility following its August report, with concerns over Nvidia’s valuation and the impact of chip restrictions in China. Nvidia has stated that it doesn’t foresee a near-term impact from these restrictions.
Market options are anticipating a 7% move higher or lower after the report.
Last quarter although earnings came in higher at $2.70 versus $2.08 estimate, and revenues beat expectations ($13.57 billion versus $11.19 billion expected), the stock peaked at $502.66 on the next day and moved down to a low price of $392.30 on October 31. It wasn’t until yesterday’s trade that the price surpassed the high price from the day after the earnings report last quarter.
The fall from high to low was a -21.9% decline. The price has rebounded 27.7% since the end of October low.
Nvidia shares are up 27.7% since the October 31 low