From Nasdaq: 2024-11-19 16:02:00

Nvidia (NVDA) is poised to release its quarterly earnings report, with its stock up nearly 200% year-to-date. The company’s dominance in AI hardware and cloud computing has fueled strong earnings momentum and high market expectations.

Analysts are bullish on Nvidia, with upward revisions to EPS estimates and a Zacks Rank #1 (Strong Buy). The consensus EPS estimate for the current quarter has climbed to $2.84, with projected annual earnings growth of 36% over the next three to five years.

Nvidia’s upcoming report will not only determine if it can beat expectations but also justify its current valuation. The company’s stock is trading at 36x next year’s earnings estimates, reflecting its rapid growth in AI and cloud computing sectors.

Investors are closely watching Nvidia’s Blackwell GPU sales trajectory, competitive landscape, guidance, and earnings growth. The stock is currently near record highs, but a pullback could occur if earnings fail to meet high expectations.

For long-term holders, holding through the report could pay off, but trimming exposure ahead of earnings may reduce volatility. Prospective buyers may want to wait for post-earnings clarity before initiating a position to potentially capitalize on a pullback.

Nvidia’s strong position in AI and cloud computing makes it an attractive investment, but its stretched valuation and unpredictable earnings warrant caution. For current investors, the long-term growth potential outweighs short-term risks, while new investors may want to wait for a more favorable entry point post-earnings.

Experts have identified 7 elite stocks, including Nvidia, as the “Most Likely for Early Price Pops.” These hand-picked stocks have historically outperformed the market with an average gain of +23.7% per year since 1988. Investors are advised to give these stocks immediate attention.



Read more at Nasdaq: Nvidia Earnings Preview: High Stakes for the AI Giant