Therefore, analysts anticipate a 104.25% increase in second-quarter 2023 earnings to $1.04 per share, with revenue growing by only 6% to $7.1 billion. However, the guidance provided by the company will be more crucial as Nvidia will be facing an easy comparison with its weak second quarter of 2022.
Analysts predict that its adjusted earnings per share for the first fiscal quarter will decrease by 32.7% year-over-year to $0.91, with revenue dropping 21.5% to $6.5 billion.
Nvidia is scheduled to release its earnings on May 24. While the stock has rallied sharply, earnings estimates have not, a clear sign that analysts do not see the same opportunities for the business as investors. Earnings estimates have dropped significantly from their peaks. Now, at least at this point, analysts do not seem as optimistic about the future despite the significant stock gains and have done little to lift the company's earnings estimates for fiscal 20. This suggests that investors are seeking significant earnings and sales growth in the future. TradingView Nvidia Stock's Valuation And Price Do Not Justify The FundamentalsĬurrently, the stock is trading at 64.8 times its fiscal 2024 earnings estimates and 24.1 times its sales estimates, both near the upper limits of their trading range. This has led to a surge in Nvidia's valuation, reaching levels close to historical highs, comparable only to the peak of the COVID-19 bubble. The company has benefited from the recent rise in cryptocurrencies such as Bitcoin and the promise of a future dominated by artificial intelligence. However, an options trader has bet that the rally is due to end and a significant pullback is coming. Nvidia's ( NASDAQ: NVDA) recent surge has seen the stock retrace almost 78.6% of its decline from its November 2021 highs, resulting in a 160% increase since October. This story was originally published on May 9 for subscribers of Reading The Markets, a Seeking Alpha Investing Group.
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