Analysts Predict Nvidia Earnings Will Face High Market Expectations
Nvidia's upcoming earnings report is expected to be closely scrutinized as recent results have often led to stock declines, and analysts highlight the importance of earnings numbers over narrative.
Nvidia is set to release its quarterly earnings on Wednesday evening, with investors and analysts anticipating strong results and a bullish outlook from CEO Jensen Huang. Despite the company's recent outperformance of the S&P 500, its shares have fallen after earnings in six of the past eight quarters, including the last four, according to Yahoo Finance AlphaSpace data.
UBS analyst Tim Arcuri said the focus will be on the numbers, noting that investors are looking for confidence in a path to earnings per share of more than $15 by 2027 and $20 by 2028, which could support further stock gains.
HSBC analyst Frank Lee suggested that a future re-rating of Nvidia may depend less on traditional earnings narratives and more on the company's positioning in open-source AI. He cited Nvidia's claim that open-source models now rank as the second most popular category by token generation and argued that growth in small language models could expand the addressable market for Nvidia's infrastructure beyond a few leading labs to a broader range of developers and governments.