Daily Digest:
w/c 17 June 2024: The US data highlight this week is Retail Sales on Tuesday, with global Flash PMI data on Wednesday. Plus on the central bank side we get the RBA, PBoC, SNB and BoE all in play

Nvidia Earnings Preview – 21st February 2024

Intermediate

What to expect from Nvidia’s Earnings

Nvidia’s forthcoming Q4 2023 earnings call, scheduled for Wednesday, February 21st, 2024, is anticipated to be a pivotal event not only for the company itself but also for the broader technology landscape, particularly in the realm of artificial intelligence (AI). As the third most valuable company on Wall Street, with a staggering market capitalization of $1.79 trillion, Nvidia is expecting earnings per share of $4.58 and forecasted revenue of $20.37 billion. Investors are closely monitoring the outcomes of this earnings release, recognizing its potential to influence market sentiment and investment decisions.

The remarkable surge in Nvidia’s shares, soaring by over 46% since the beginning of the year, underscores the heightened anticipation surrounding the company’s performance. This surge has been fueled by fervent enthusiasm for the business prospects of AI technology, which Nvidia has been instrumental in advancing through its cutting-edge chip technologies. Notably, Nvidia’s market capitalization increase, above that of Intel’s, reflects the widespread recognition of its leadership role in the AI sector. These robust gains have played a significant role in driving the overall performance of the S&P 500 index, contributing 24% of its rise in the last years.

As the earnings call approaches, market participants are bracing themselves for potential volatility, with options pricing suggesting a substantial swing of around 11% in either direction following the release of Nvidia’s financial results. This heightened level of volatility is indicative of the market’s keen interest in Nvidia’s performance and its implications for the broader tech sector. Additionally, a disappointing report from Nvidia could exacerbate existing concerns over market crowding, particularly in relation to the largest stocks, further underscoring the significance of this upcoming earnings announcement.

Who are Nvidia 

NVIDIA Corporation, founded in 1993, is a global technology company renowned for its innovative graphics processing units (GPUs) and semiconductor products. The company is a leader in the design and development of advanced graphics, artificial intelligence (AI), and gaming technologies. NVIDIA’s GPUs are widely used in various industries, including gaming, data centres, automotive, and professional visualisation. Their products power some of the most demanding computing tasks, from high-end gaming graphics to complex AI algorithms and autonomous driving systems. 

nvidia vs alphabet

Ranked as the third most valuable company on Wall Street, trailing only Apple and Microsoft, Nvidia has emerged as a significant indicator for the artificial intelligence sector. Surpassing Amazon and Alphabet, in terms of market cap, the chip giant solidifies its position as a leading force in the tech industry, particularly in the realm of artificial intelligence.

Why is their Earnings Release so Important 

NVIDIA’s earnings releases are highly significant due to the company’s pivotal role in shaping the future of computing and its influence across multiple sectors. As a key player in the technology industry, NVIDIA’s financial performance and guidance offer insights into broader market trends, advancements in AI and graphics technology, and the overall health of the semiconductor industry.

nvidia

Investors, analysts, and stakeholders closely monitor NVIDIA’s earnings reports to assess the company’s growth trajectory, market competitiveness, and potential impact on the broader technology sector. Given NVIDIA’s reputation for innovation and its widespread adoption in critical computing applications, its earnings releases serve as a barometer for the tech industry’s performance and innovation landscape.

Editor

Luke is currently a student in his final year studying A levels in Economics, Maths and Physics at The Bishop’s Stortford High School. He has a strong interest in economics and financial markets,... Continued

Comments on this analysis

No information, nor financial advice related to online trading is offered through the form.
  1. Hi Luke,
    First this is very sentimental for me to write a comment as I am a 2014 student of your Dad, if I am right Steve Miley. And I do come back here often to read about Hawks and Doves Sheet that he introduces me to then.

    And here comes Luke Miley today following the footstep of Steve and it’s great to see such a progression. I was researching about NVIDIA too and what a great commentary you have written about them and for now I can see much more faster development pouring through in the era of tech development. My major concern is it will get to a point where there will be a lot of disparity in our society as tech company is running faster than the fervent users of most tech innovation and hence I believe the government need to start driving policies in a balance manner in favour of tech and the fervent users so that each innovation can spread simultaneously globally rather than just some set of beneficiary like the 1% of the society. It’s like capitalism or the 10% rich or even 5% of successful financial markets trader.

    I can see the need of educational to experiential develooment in our society so that tech can be widespreadly understandable.

    Thank you Luke and hope to connect soon and share more ideas.

Your email address will not be published. Required fields are marked *