The world hottest business is back to wrap up the tech earnings season. Fund managers wait nervously Nvidia is about to unveil its latest quarterly results on Wednesday afternoon. As Wall Street expects further strong third-quarter results (Visible Alpha forecasts revenue to rise 84% year-over-year to $33.2 billion), all eyes are on the giant's forecast chips for the last quarter of the year.
Indeed, the company's next-generation GPU offering, or Blackwell, is program to start hitting the bottom line. CEO Jensen Huang described as “crazy” request for the new platform, which represents a dramatic improvement in performance over the so-called Hopper chips that powered the AI boom. It's a spectacular display of innovation and strength from a company that has seen its shares skyrocket more than 800% over the past two years, with the company adding more than 3,000 billion dollars of market capitalization to its capital. places of commerce with Apple as the largest company in the world.
Dan Ives of Wedbush Securities, one of Wall Street's biggest tech bulls, is expecting a splashy new release, saying revenue topping $2 billion and a similar increase over the company's forecasts fourth quarter would indicate that the AI party is just getting started.
“We expect another surprise tomorrow from AI godfather Jensen who will put kerosene into this bull market engine,” Ives and other Wedbush analysts wrote in a statement. note.
However, others who follow the stock are more cautious. Several analysts have stated Fortune Wednesday's call could turn out to be a “sell the news” event. This is what happened last quartereven though the company far exceeded earnings and revenue expectations, with sales increasing more than 122% year over year.
The stock abandoned 18% in the week following the call, trading just north of the $100 mark as investors pocketed their gains. However, the stock has gained around 40% since then. Shares rose about 4% on Tuesday, surpassing the $145 threshold, in anticipation of yet another explosive release.
Nonetheless, the stage could be set for another round of immense profit-taking, according to Ted Mortonson, managing director and sector strategist in the technology office at Baird. Retail investors, he said, often trade on “FOMO,” or fear of missing out. On the other hand, he added, the institutions will likely be run by what he dubbed “FOGK.”
“It’s the fear of being killed,” he said.
With inventory nearly tripling since the start of the year, he said, his customers have won. They are not looking to give up these gains before the end of the year.
How the stock moves after Wednesday's call will likely have a lot to do with what the company says about Blackwell. Jensen had previously said the revolutionary platform was expected to generate “several billions” in additional revenue starting in the fourth quarter, but Angelo Zino, vice president and principal analyst at CFRA Research, said he thought Wednesday's forecast would be relatively cautious.
#Nvidia #analyst #predicts #39stunning39 #thirdquarter #results #Wall #Street #aren39t
,