On the eve of its earnings announcement, Nvidia closed up 1.46%.
On August 27, Nvidia’s stock price on the New York Stock Exchange rose 1.46% to $128.30, bringing its market capitalization to $3.156 trillion.
The rise in Nvidia’s stock appears to be driven by expectations of better-than-expected results, which are set to be announced the following day.
Nvidia plans to release its earnings report shortly after the market closes today.
The market anticipates that Nvidia’s revenue for the last quarter will reach $28.7 billion, with earnings per share estimated at $0.65. These figures represent year-over-year increases of 113% and 139%, respectively.
Wall Street expects Nvidia to exceed last quarter’s earnings expectations and raise its outlook for the current quarter. This optimism is bolstered by the recent strong performance of Taiwan’s TSMC, which manufactures Nvidia chips.
Analysts generally expect Nvidia to maintain a strong performance that exceeds Wall Street’s projections. However, they anticipate a slowdown in revenue and earnings growth rates following the dramatic increases observed previously.
In the last quarter, Nvidia reported a revenue surge of 262% and an earnings per share (EPS) increase of 461%. This quarter, growth is expected to moderate to around 113% for revenue and 139% for EPS.
This anticipated slowdown is not surprising, given that Nvidia has experienced extraordinary quarterly revenue and earnings growth rates since the start of last year. Such rapid growth is unsustainable in the long term.
How investors interpret these past growth rates will likely influence Nvidia’s stock price moving forward.