However, some analysts are concerned that Nvidia's stock could fall even if it beats earnings due to high investor expectations. This happened after its last quarterly report, which saw a brief sell-off despite strong results. Clark Bellin, CIO of Bellwether Wealth, advised investors not to establish a position in Nvidia when the stock is near record highs, suggesting it may be best to wait for a pullback.
Key takeaways:
- Nvidia investors are expecting volatile moves in the stock after the company reports earnings, with markets pricing in an 8% stock swing, which would imply a $300 billion gain or loss in market value.
- Investors are particularly interested in the firm's guidance for Blackwell, its next-generation AI chip, with Wall Street looking for clues on how strong demand will be for its next-gen GPU.
- Strategists from Wedbush Securities predict that Nvidia could be on track to beat its earnings revenue by $2 billion, and the company could reach a $4 trillion valuation or higher in 2025.
- Despite the positive outlook, some forecasters are concerned that Nvidia's stock could drop even if the company beats earnings, due to investors' high expectations.