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NVIDIA Earnings Preview: AI Chip Sales in Focus
Traders Expect Earnings Report to Move Stock
NVIDIA Corporation (NVDA) is set to release its second-quarter earnings report on August 29, 2024, after the market closes. Traders are expecting the report to have a significant impact on the company's stock price, with options market activity suggesting a potential move of 5% or more.
Key Metrics to Watch
Analysts will be paying close attention to the following key metrics in NVIDIA's earnings report:
- Revenue from AI chip sales
- Adjusted earnings per share
- Guidance for future quarters
AI Chip Sales a Key Driver of Growth
NVIDIA's AI chips are used in a wide range of applications, including data centers, autonomous vehicles, and gaming. The company has been a major beneficiary of the growing demand for AI technology, and its AI chip sales are expected to continue to be a key driver of growth in the coming quarters.
Analysts Expect Strong Results
Analysts are generally expecting a strong earnings report from NVIDIA. The consensus estimate for revenue is $28.74 billion, up 21% from a year ago. Adjusted earnings per share are expected to come in at 65 cents, up 25% from a year ago.
Risks to Consider
There are some risks to consider that could impact NVIDIA's earnings report and stock price.
- A slowdown in demand for AI chips due to economic uncertainty
- Increased competition from other chipmakers
- Supply chain disruptions
Overall, Positive Outlook
Despite these risks, the overall outlook for NVIDIA remains positive. The company is a leader in the AI chip market, and it is well-positioned to continue to benefit from the growing demand for AI technology.