Wednesday is Nvidia’s earnings report day. What Concerns Some Wall Street Analysts.

As of Tuesday’s close, Nvidia’s stock had decreased by more than 40% for the year.

Investors are unsure of how quickly Nvidia’s business can recover following a recent run of problems. When the company discloses its most recent financial results and outlook on Wednesday after the market closes, they will receive a crucial update.

Nvidia (NVDA) pre-announced poor statistics for its fiscal second quarter earlier this month. The business predicted at the time that revenue for the July quarter would be $6.7 billion, much less than its earlier forecast of $8.1 billion. It highlighted lower-than-anticipated gaming segment revenues as well as a harsh macroeconomic climate, adding that “challenging market conditions” are anticipated to persist in the third fiscal quarter.

Since then, Nvidia’s consensus valuation has been declining according to Wall Street analysts. They now predict that the business will post revenue for the July quarter of $6.7 billion, in line with the most recent expectation from Nvidia, and adjusted earnings per share of 50 cents. Revenue for the current quarter is expected to be $6.9 billion, according to analysts.

The future product pipeline of Nvidia was cited by Bernstein analyst Stacy Rasgon in reiterating his Outperform recommendation on the stock earlier this week.

Once we overcome the current challenges, we can find cause for optimism, he wrote.

However, some other analysts are concerned that the market for Nvidia’s graphics cards may continue to be poor because of the company’s exposure to cryptocurrency mining, the high cost of its top-of-the-line cards, and the consequences of a faltering global economy.

As of Tuesday’s close, Nvidia’s stock had fallen by 42% this year, compared to a 28% decrease in the


ICE Semiconductor Index performance is tracked by the iShares Semiconductor ETF (SOXX).

About the author


Kathy Lewis

Kathy Lewis is an all-around geek who loves learning new stuff every day. With a background in computer science and a passion for writing, she loves writing for almost all the sections of Editorials99.

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