Nvidia Faces Worst Day in Over a Year as Wall Street Awaits Blowout Results
Nvidia Corporation (NVDA) is gearing up to release its latest financial results, with expectations running high on Wall Street. However, as the chip giant faces its worst day in over a year, some investors are beginning to wonder if the company can continue its impressive streak.
Currently, Nvidia’s stock is taking a hit, down 6.2% on Tuesday. If this trend continues, it could result in the largest single-day percentage decline since December 27, 2022, when the company lost 7.1%.
Despite this setback, Nvidia’s stock has enjoyed a significant surge, climbing over 35% since the start of the year. Anticipation is high for the company’s adjusted earnings per share, expected to increase by more than 400%. Additionally, revenue could more than triple, adding to Nvidia’s already impressive financial growth.
However, today’s decline could be a cause for concern. Nvidia is on track to shed an estimated $112 billion in market capitalization, marking the largest daily loss of market cap in the company’s history. Remarkably, this loss could exceed the total market values of other major chip companies, including Micron Technology Inc. and Analog Devices Inc.
Industry analysts are eagerly awaiting Nvidia’s financial report. According to FactSet, anticipated adjusted earnings per share for the fiscal fourth quarter that ended in January stand at $4.59, with revenue hitting $20.4 billion. The forecast for the current quarter is equally remarkable, with analysts expecting adjusted EPS to reach $5.02, representing a staggering 350% increase, and revenue to hit $22.2 billion, roughly three times the previous year’s figures.
Some experts speculate that Nvidia’s guidance could reach more than $25 billion in quarterly revenue. However, Morgan Stanley’s Joseph Moore and his team believe the company may initially take a more conservative approach.
Raymond James’ Srini Pajjuri remains optimistic about Nvidia’s future, suggesting that any short-term pullback in the company’s stock will be short-lived. Pajjuri is particularly excited about Nvidia’s forthcoming B100 product, which is expected to have a rapid rollout. He also highlights the increasing need for processing power for artificial intelligence, which shows no signs of easing.
As the market awaits Nvidia’s blowout results, all eyes remain on the chip giant’s ability to maintain its impressive growth trajectory in the face of today’s challenges.
Analyst comment
Negative news.
As an analyst, the market is likely to experience a short-term downturn due to Nvidia’s worst day in over a year. However, given the company’s impressive financial growth and anticipated blowout results, the decline is expected to be temporary. The market will closely watch Nvidia’s ability to maintain its growth trajectory in the face of current challenges.
