NVIDIA Corp (NVDA)

[DiscoverGold]

Stock To Watch This Week: NVIDIA (NASDAQ:NVDA)
By: Investing.com | August 21, 2022

• Zoom is struggling to maintain its pace of growth as many in-person activities resume.
• NVIDIA warned this month that its sales are being hurt by the slowdown in the PC market.
• Salesforce has provided a robust forecast for its annual sales, signaling that demand for business software is holding up.

U.S. equity markets are likely to remain volatile amid the uncertainty about the future direction of interest rates with investors seeming to be moving to the sidelines after a powerful summer rally.

Stocks ended their streak of four-week gains last week on speculation that Federal Reserve Chairman Jerome Powell will reinforce the central bank’s resolve to stamp out inflation when he speaks on Friday during the three-day Wyoming conference.

Stocks have been choppy and lower in the past week as some analysts warned that the summer rebound isn’t justified when inflation is still running high, risking future growth. The S&P 500 finished down 1.2% for the week, its first decline after four weeks of gains.

Aside from interest rates and worries about growth, investors will also be watching some important earnings releases this week. Here are three we're following:

NVIDIA Corporation

Semiconductor giant NVIDIA (NASDAQ:NVDA) will report its second-quarter, FY2023 earnings on Wednesday, Aug. 24 after the market close. Analysts expect the chipmaker to produce an EPS of $0.529 on revenues of $6.83 billion.

NVIDIA, the largest U.S.-based chipmaker by market value, warned this month that its sales are being hurt by the slowdown in the PC market and the company won’t be able to meet its earlier revenue forecast.

The chipmaker now expects revenue of $6.7 billion for the quarter ended July 31, some 17% below the $8.1 billion it had forecast in May, amid a 33% drop in gaming revenue.

NVDA EPS Forecast Trend


Nvidia EPS Forecast Trend per InvestingPro+
Source: InvestingPro+

“Our gaming product sell-through projections declined significantly as the quarter progressed,” Nvidia CEO Jensen Huang said in the statement. “As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our gaming partners to adjust channel prices and inventory.”

Following that announcement, Micron Technology (NASDAQ:NASDAQ:MU), another leading U.S. maker of memory chips, also warned investors that revenue wouldn't meet projections. NVDA stock fell on Friday by about 5% to close at $178.49. They are down 39% so far this year.

Read Full Story »»»

DiscoverGold