Now That Nvidia Has Reported, Here's What Investors Should Do Next
This is what I'm watching as the earnings chaos settles.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
All eyes will be on Nvidia NVDA today.
Wednesday night, the company reported earnings, as if you didn’t already know. Earnings per share of $0.68 per share on revenue of $30 billion surpassed analyst estimates of $0.64 per share on revenue of $28.8 billion. The whisper number I had been hearing was that $30 billion mark, which may explain why the stock sold off last night.
Revenue guidance of $32.5 billion for next quarter is ahead of the current $31.9 billion estimate, but expect the whisper number to creep higher into the $34 billion to $35 billion range.
The market will focus on Blackwell, Nvidia’s next-generation chip. It’s sure to sell as much as it can produce well into the next fiscal year, but with revenue amounts in the tens of billions of dollars, achieving monster beats on revenue simply becomes nearly impossible. While demand appears nowhere near slowing, the law of large numbers will always win out.
I will keep an eye on the stock Thursday, but I am more focused on where Nvidia trades next week or the week after. Today will be all about emotion and unwinding pre-earnings trades. After the earnings chaos settles, we will see what Wall Street thinks about Nvidia going forward.
If the stock can reverse and close above $135, it could be off to the races again. Aggressive traders might buy a close above $130 rather than waiting for $135. If NVDA can’t hold $115, I could see as low as $102.50 getting tested.
But for now, we just watch.
On a separate note, congratulations to Warren Buffett and his “little-known” company, Berkshire Hathaway BRK.B, for reaching the trillion-dollar market. It looks like he finally made it.
At the time of publication, Byrne had no positions in any securities mentioned.
