When is Nvidia earnings and what Wall Street expects from the $3 trillion AI giant?

NVDA earnings date: Nvidia, the AI chipmaker that is leading the artificial intelligence boom, is set to report its quarterly earnings after the market closes on Wednesday, as per a report. The company, now the single largest stock in the market, has become a key driver of Wall Street sentiment and this week, investors are watching more closely than ever, according to a Bloomberg report.

What Wall Street Is Expecting From Nvidia’s Earnings

Analysts are expecting Nvidia to report adjusted earnings of $1.01 per share on revenue of $46.13 billion, as per the report. That would be another blockbuster quarter for a company that’s practically become synonymous with AI, but with the bar set so high, some on Wall Street are urging caution, according to Yahoo Finance.

John Vinh, an analyst at KeyBanc, pointed out that "We expect NVDA to report strong [second quarter] results and guide [third quarter] slightly below consensus, as we expect NVDA's outlook to exclude direct revenue from China given pending license approvals and uncertainty on timing," as quoted in the report.


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Nvidia’s Stock Price Forecast

However, he raised his price target on the stock to $215 from $190 as the analyst highlighted that he’s optimistic about the company’s prospects heading into next year, as per Yahoo Finance.

Nvidia’s stock has been on a tear this year, up 32% so far and nearly doubling since markets bottomed in April, according to the report. Its high-performance chips are used by nearly every major tech firm investing in AI, from Meta and Microsoft to Amazon and Alphabet, which together account for about 40% of Nvidia’s revenue, according to a Bloomberg report.

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Will Nvidia’s Earnings Set the Tone for the AI Boom?

But enthusiasm for AI stocks has cooled recently. Outside of a strong rally on Friday, August has been a tough month for tech. The Information Technology sector is the worst performer in the S&P 500 this month, while other areas of the market, like small-cap stocks on Russell 2000 index and hSPDR S&P Homebuilders ETF, have taken the lead, boosted by growing hopes for interest rate cuts, as per the Yahoo Finance report.

Still, some strategists believe the AI trade is far from over. Stuart Kaiser, head of trading strategy at Citi, said that he expects "sentiment selling" in the tech and AI trade to clear quickly unless Nvidia "posts a large disappointment," as quoted in the report.

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The stakes are high as Nvidia has become more than just a company, it’s now seen as a bellwether for the broader market, according to Bloomberg. With nearly 8% weighting in the S&P 500, any movement in Nvidia’s stock has ripple effects across portfolios, as per the report. For investors, it’s not just about whether Nvidia beats expectations, but whether it can keep justifying the sky-high hopes pinned on it, according to the report.

Eric Beiley, executive managing director of wealth management at Steward Partners, said that, “Nvidia is crucial for the stock market because any signs of further strength will be the fuel to light this market on fire,” adding, “The looming risk is all this AI investment may be peaking if it doesn’t deliver and its outlook is cautious, which would rattle markets," as quoted by Bloomberg.

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Market Optimism Returns Amid Fed Rate Cut Hopes

After a stretch of uncertainty, optimism returned to markets last week following comments from Federal Reserve Chair Jerome Powell, who signaled that rate cuts could be coming, as per the report. That helped snap a five-day losing streak for the S&P 500. Now, Nvidia’s report is shaping up to be the next big test, not just for tech, but for the entire rally that’s been powered by AI excitement over the past few years, according to Yahoo Finance.

FAQs

When will Nvidia announce its quarterly earnings?
Nvidia will report its earnings after the market closes on Wednesday, as per a Bloomberg report.

What earnings per share is Nvidia expected to report?
Wall Street expects Nvidia to report adjusted earnings of $1.01 per share, as per a Bloomberg report.