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Here’s how Nvidia stock is expected to react after Q2 earnings - poll

Published 28/08/2024, 07:20 pm
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Investing.com -- Ahead of Nvidia’s much-anticipated earnings report on Wednesday, Investing.com conducted a poll to gauge investor expectations for the stock's reaction after the print’s release.

Overall, the survey shows the sentiment heading into the print is largely bullish.

Our X.com poll published Monday garnered more than 3,000 votes so far, with 41.5% of respondents believing Nvidia (NASDAQ:NVDA)'s stock will rise by 8% or more when markets open on Thursday following the earnings announcement a day earlier. Meanwhile, 24.9% expect a share price jump of between 0.1% and 8%.

On the flip side, 13.4% of respondents anticipate a drop in the stock price of between 0.1% and 8%, while over 20% foresee a significant decline of 8% or more.

Nvidia is set to release its second-quarter earnings for fiscal 2025 after the market closes on Aug. 28, with investors closely awaiting confirmation for continued growth in the data center segment and any updates regarding delays in the launch of the new Blackwell AI chip.

Wall Street analysts, according to Visible Alpha, estimate that Nvidia's revenue will rise to $28.84 billion, more than doubling from the same quarter last year.

Net income is also projected to more than double, reaching $14.95 billion.

This year, Nvidia has more than doubled in value, becoming one of the top-performing stocks in the S&P 500 with an approximate 160% return. Since the end of 2022, the stock has surged by around 783%.

Wednesday's earnings report will be important for both institutional and retail investors. The Santa Clara, California-based company must deliver strong results and optimistic forecasts to support its high valuation.

Currently, Nvidia trades at 47 times forward earnings estimates, with only Tesla (NASDAQ:TSLA) among the "Magnificent Seven" having a higher valuation.

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