Traders are gearing up for a major stock movement as Nvidia Corporation (NVDA), the world’s most valuable company, gets ready to report its quarterly earnings. Analysts predict Nvidia’s stock could swing up or down by 8% after the report, which translates to a $300 billion shift in market value—bigger than the total value of most companies in the S&P 500 Index.
Bank of America strategists say this earnings report is more critical for the stock market than upcoming Federal Reserve meetings or inflation data. Nvidia has been the leading force in the artificial intelligence (AI) sector, making its earnings a key focus for over a year.
This quarter, however, there’s more uncertainty than usual. The spotlight is on Nvidia’s new chip line, Blackwell. While the company expects these chips to bring in billions of dollars in revenue for the next quarter, CEO Jensen Huang has called the demand “insane.” But delays in production make it hard to predict how many chips will be ready to meet this demand.
“There’s a lot of uncertainty about Blackwell’s production capacity,” said Dan Eye, Chief Investment Officer at Fort Pitt Capital Group. He added that while Nvidia’s CEO has a strong reputation, the company faces high expectations and might struggle to deliver extremely optimistic guidance.
Analyst predictions for Nvidia’s revenue in the next quarter vary widely, with estimates ranging from $30 billion to over $37 billion, according to Bloomberg. Part of the reason for this gap is that some customers may delay buying Nvidia’s current Hopper chips, waiting instead for the new Blackwell line.
Morgan Stanley analyst Joseph Moore expects this to be a “transitional” quarter for Nvidia. He predicts the company will offer cautious guidance slightly above average expectations. However, as long as Nvidia signals strong growth for Blackwell in the coming year, most investors are likely to remain optimistic.
Nvidia will report its earnings on Wednesday after the market closes, and all eyes are on what the company reveals.