Nvidia is scheduled to report its third-quarter earnings on Wednesday, November 19, after the market closes. The earnings report is anticipated to significantly influence the broader AI sector and the stock market, given Nvidia's substantial market capitalization and its role as a barometer for AI-driven growth.
This announcement is particularly scrutinized amid Wall Street concerns about a potential AI bubble, with Nvidia's valuation standing at approximately $4.6 trillion. Recent investor sentiment has been affected by several high-profile stake liquidations.
Billionaire Ken Griffin reportedly sold around $100 million worth of Nvidia shares. Additionally, SoftBank disclosed its complete divestment of Nvidia shares, valued at $5.8 billion.
These moves followed information that George Soros had acquired substantial "put" options, a strategy that profits from a stock's decline, against Nvidia and Palantir. Nvidia's stock experienced a decline of over 3% in early trading on Tuesday, November 18.
Analysts are projecting earnings per share of $1.25 on $54.9 billion in sales for the third quarter, representing a 56% year-over-year increase. Furthermore, expectations for the next quarter's guidance are set at $61.44 billion.
In its preceding second-quarter report on August 27, Nvidia exceeded expectations with total revenue of $46.7 billion, a 56% year-over-year increase, driven by its data center segment. Despite this, the data center revenue reported was slightly below analyst projections.
The upcoming earnings report is expected to cause a significant swing in Nvidia's market value, potentially by as much as $320 billion, according to Reuters. Options trading data suggests an implied stock movement of 7% in either direction following the release.
The earnings call will commence at 5 p.m. ET, with the report itself available on the company's investor relations website at 4 p.m.
ET on November 19. Nvidia's stock price was around $180 in early trading on November 18, reflecting a roughly 30% year-to-date increase.
