Preview: NVIDIA to Report Earnings After Market Close on Wednesday, Beating Expectations in the Past 14 Quarters

BlockBeats News, August 24th. NVIDIA will announce its quarterly earnings report after the US stock market closes this Wednesday, becoming a key moment for Wall Street to assess whether the AI investment frenzy is still ongoing. Analysts suggest that the market should not only focus on the company's revenue and profit, but also evaluate whether the massive investment in AI infrastructure can continue to grow rapidly based on CEO Jensen Huang's remarks.

The market's expectations for NVIDIA's earnings report have been continuously raised. Data shows that NVIDIA has beaten analysts' earnings expectations in the past 14 quarters. In the most recent quarter, the company's net profit increased by 210% year-on-year, significantly higher than Wall Street's previous forecast of 126%. Analysts expect NVIDIA's second-quarter revenue to reach a record $92 billion, exceeding the early-year prediction of $78 billion. The company needs to achieve a profit of over $51.5 billion to surpass the current market expectations.

However, NVIDIA's stock price has exhibited a particular pattern after earnings reports. In the past four quarters, the company's stock price has declined on the next trading day. The options market currently predicts that NVIDIA's stock price may experience a 5.3% fluctuation on the trading day after the earnings report, higher than the average level in the past 12 months after earnings reports.

Some investors have already bet on a price pullback, but some analysts remain optimistic. Frank Lee, Head of Technology Hardware and Semiconductor Research at HSBC Global Research, recently raised NVIDIA's target price from $325 to $360, citing reasons such as the strategic partnerships the company has established with suppliers and its significant role in the open-source AI field.