PRIMER: Nvidia (NVDA) earnings due Wednesday, 23rd August after the closing bell at 21.20 BST/16:20 EDT.
SourceNewsquawk
SectionUS Equities
- EXPECTATIONS: Q2 23 (USD): EPS (exp. 2.09), revenue (exp. 11.224bln). FY24 EPS view (exp. 8.25), revenue view (exp. 44.5bln). Q3 23 EPS view (exp. 2.39), revenue view (exp. 12.609bln).
Revenue breakdown
- DataCenter (exp. 7.691bln)
- Gaming (exp. 2.4bln)
- Automotive (exp. 317mln)
- Professional visualisation (exp. 308mln)
- OEM and IP (exp. 101mln)
Analysis
- According to Refinitv/Reuters data, tech earnings so far have predominantly beaten estimates with 93% beating, 2% being in line, and 5% missing expectations, showing a quarterly surprise of 7.6% for the sector overall. Looking at the subsector, Semiconductor & Semiconductor Equipment, 94% have beaten with 6% being in line with estimates, showing an overall quarterly surprise of 18.4%, making it one of the outperforming sectors over the latest earnings season, only falling behind the 23.5% upside surprise in autos (TSLA, GM, F, BWA, APTV), and the 26.3% upside surprise in the retail sector (AMZN, AZO, EBAY, HD, TJX etc).
- Nvidia (NVDA) has surged 221% YTD on AI optimism given it is a huge beneficiary with its equipment a necessity for those looking to build powerful AI tools, helping take its market cap north of USD 1tln.
- The strength in the stock now sees it hold a 4.3% weight in the Nasdaq 100 and a 2.9% weighting in the S&P 500.
- Just Monday alone it rose another 8.5% in anticipation of its earnings where analysts are seemingly more and more optimistic about their results following a slew of PT upgrades.
- 15 Analysts rate NVDA as a strong buy, while 29 have it as a buy, 6 are hold and 1 recommends a sell, with 0 holding a strong sell opinion on the Co.
- Analysts at Zacks recall the Q1 report, where it saw huge beats on both EPS and revenue, which helped the stock rally 24% in the following week. With the strong outperformance in NVDA, analysts have been heavily raising expectations with the quarterly estimates expected to show a 304% Y/Y gain in EPS and revenue is expected to show a 65% Y/Y gain.
- KeyBanc, HSBC and BMO were the latest to raise their forecasts for the name ahead of earnings, all citing the longer term potential and guidance given accelerating AI trends.