Nvidia (NVDA) is gearing up to report its third-quarter earnings after the market closes on Tuesday, and investors are eagerly awaiting the results. The company’s stock has skyrocketed over 200 percent since the beginning of the year, making it one of the top performers in the market. As Nvidia’s earnings report approaches, experts are analyzing the potential impact it will have on the market and looking closely at the company’s outlook amidst recent chip export restrictions to China.
Ruben Roy, an Applied Technology Analyst at Stifel, is optimistic about Nvidia’s future performance. He expects several quarters of robust results, driven by the strong momentum in orders for the company’s high-end chips and the continued demand for large language model training networks. While supply constraints have affected Nvidia’s sales, Roy believes that these constraints will begin to ease towards the end of the year.
Cathie Wood, Founder and CEO of ARK Investments, offers a unique perspective on Nvidia. Although Nvidia has played a crucial role in enabling breakthroughs in AI, Wood’s flagship strategy does not include the stock in its portfolio. Wood emphasizes the importance of identifying the prime beneficiaries of AI advancements. Her portfolio consists of companies with deep domain expertise, AI integration, strong distribution capabilities, and proprietary data.
On the other hand, Paul Meeks, a Professor at Citadel, expresses concerns about Nvidia’s upcoming earnings report. He worries that the stock may experience a similar reaction to the previous quarter, despite beating expectations and providing positive guidance. Meeks emphasizes that market reactions, rather than the company’s fundamentals, are what worry him.
Overall, Nvidia’s Q3 earnings report will provide valuable insights into the company’s performance and its potential impact on the market. With high expectations and the ongoing chip export restrictions, investors will be closely monitoring the results and guidance provided by Nvidia.
1. What has been the stock performance of Nvidia this year?
Nvidia’s stock has surged over 200 percent year-to-date, making it one of the top performers in the market.
2. What are the factors contributing to Nvidia’s positive outlook?
Strong momentum in orders for high-end chips and the continued demand for large language model training networks are expected to drive Nvidia’s robust performance in the coming quarters.
3. Why doesn’t Cathie Wood’s flagship strategy own Nvidia?
While Nvidia has been instrumental in AI breakthroughs, Wood’s strategy focuses on identifying the prime beneficiaries of AI advancements. Her portfolio comprises companies with deep domain expertise, AI integration, strong distribution capabilities, and proprietary data.
4. What worries Paul Meeks about Nvidia’s upcoming earnings report?
Meeks expresses concerns about a potential repeat of the stock’s negative reaction despite beating expectations and providing positive guidance, emphasizing that market reactions are what worry him the most.