NVIDIA's Q2 Results Announcement NVIDIA (NVDA) plans to announce its Q2 (Jul) results today after the market closes. A subsequent call is scheduled at 5:00pm ET.

The FactSet consensus predicts an adjusted EPS increase of 301% year-over-year to $2.08 and a 67% revenue rise to $11.19 billion.

Market Trends and AI Influence

The markets underwent corrections for most of 2022 but rallied at the onset of 2023, largely driven by AI advancements. ChatGPT sparked an AI surge, attracting even non-tech companies. While some speculated AI's rise as mere hype, NVDA's impressive quarterly guidance, reminiscent of pandemic-era growth after consecutive quarters of year-over-year drops, indicated otherwise.

Investor Anticipation and Market Impact

NVDA's April quarter report significantly influenced markets in late May. Investors are keenly awaiting the company's July quarter results, especially considering the recent market corrections and the Fitch downgrade in early August.

Bullish Perspective on NVDA

Optimists argue that AI hasn't shown signs of slowing down, which bodes well for NVDA's H100 GPUs, used for training large language models, and its primary Data Center segment, accounting for 56% of FY23 revenue. Taiwan Semi (TSM), NVDA's main supplier, noted a rise in AI demand in the June quarter. Companies like Lam Research (LRCX), KLA Corp (KLAC), and Applied Materials (AMAT) recently hit 52-week highs due to positive quarterly results, partly aided by AI servers. Fabrinet (FN), which counts NVDA among its top four clients, also experienced a surge due to strong AI demand in the June quarter.

Bearish Case on NVDA

Skeptics argue that NVDA's valuation is too high, and any minor flaw could lead to a sell-off. Several analysts have recently increased their price targets for NVDA, setting high expectations. NVDA's valuation metrics, such as its forward earnings and sales multiples, are considerably higher than competitors like Intel (INTC) and Advanced Micro (AMD).

TECHS:

NVDA's market movement today is expected to be substantial. Options analysisindicates a potential move of over 15% in either direction. With a market cap exceeding $1 trillion, NVDA's price fluctuations will likely have a significant impact on the broader market.

JOIN NOW

If you liked this content please click the ❤️ below and/or share this post.

SHAMLESS PLUGS

CLICK HERE TO CHECK OUT MY 2022 PREVIEW OPINION PACKET. OVER 80 PAGES OF CONTENT AND INFORMATION AVAILABLE HERE.

TOTALLY FREE Trading Packet!

Click here to get my packet that shows you how I traded $600 into $100K FOR FREE.

This packet will explain to you in depth how I trade and how I manage my risk.

I am happy to share this. Just use the code KPAKFRAUD at checkout and you will get it TOTALLY FREE. You will pay absolutely nothing.

Sentient (NVDA Earnings)