Nvidia Corp. Inc. is scheduled to report earnings after Tuesday’s close. The stock just hit a record high of $505.48/share and is currently trading near $497/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
The company is expected to report a gain of $3.18/share on $16.12 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $3.47/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company’s earnings are expected to massively over the next few years, thanks in part, to the big explosion in its artificial intelligence chips. In 2023 the company is expected to earn $3.34/share. In 2024, that number is expected to grow to $10.03, or a 200% gain! In 2025, the earnings are expected to grow to $16.50/share!
A Closer Look At The Technicals
Technically, the stock is acting well and is one of the big leading stocks of 2023! The stock just hit a fresh record high on Monday which clearly shows how strong investor demand is for the stock. The company is well positioned to keep rallying if it can deliver and demand for A.I. remains strong. Technically, the bulls want to see the stock gap up and the bears want to see it gap down after earnings are released.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: At the time of this writing, I have a position in NVDA and the stock has been featured in my FindLeadingStocks.com service.