When will NVIDIA release its earnings?

NVIDIA (NASDAQ:) is expected to report results after the close of trading on Wednesday, May 25.

What do analysts expect from NVDA’s earnings?

Consensus analyst expectations are for the company to report $1.20 in EPS on $8.1 billion In income.

NVIDIA Revenue Overview

If you were trying to invent a company to capitalize on exciting secular tech trends like gaming, artificial intelligence, data centers, self-driving car development, crypto-asset mining, and 5G communications technology, you would create NVIDIA. Unsurprisingly, the chipmaker has seen its sales grow 6x over the past nine years, from $4.3 billion in 2013 to nearly $22 billion in 2022.

Expectations remain high for this quarter, with traders expecting revenue and profits to rise by more than 40%, but the proverbial ‘elephant in the room’ will be the global shortage of semiconductors. Last month, NVIDIA noted that its graphics processing units (GPUs) were “restocked and recharged,” hinting that the worst of the chip shortage may be behind the company. While this certainly bodes well for sales volumes in the future, this could reduce average selling prices (ASP) and hurt the company’s impressive profit margins. Traders will be on the lookout for any signals that the balance between chip supply and demand is shifting in this quarter’s earnings report.

Meanwhile, on the valuation front, NVDA continues to impose a “best in breed” premium over its smaller rivals. As for forward P/E ratios, NVDA is still trading at a multiple of 30, dwarfed rivals like Advanced Micro Devices (NASDAQ:) (forward P/E of 22), Texas Instruments (NASDAQ:) (19 ), Intel (NASDAQ:) (12), Qualcomm (NASDAQ:) (10) and Micron Technology (NASDAQ:) (6). Compared to itself, NVDA is roughly at its average historical valuation, suggesting that now may be the time for long-term investors to acquire shares of a large, cutting-edge company at a reasonable valuation. whether earnings and forecasts are able to meet. /exceed expectations.

What’s next for NVDA Actions?

As the chart below shows, NVDA shares have had a tough six months, with the tech giant losing about 50% of its value from its Nov. 22 intraday peak at nearly $350. More recently, the stock has fallen into a descending channel since early April, although bulls are trying to protect the 78.6% Fibonacci retracement of the 2019-2021 rally near $165.

If earnings are better than expected, the stock should break out of its downtrend channel and head back towards its monthly high near $200. Meanwhile, a disappointing earnings report could lead to a break of support in the $165 area and open the door for further decline towards $150 or even the May 2021 lows in the $165 area if appetite for risk continues to decline.

Source: TradingView, StoneX

Original post