Nvidia Ahead of the Numbers: Will There Be Another Surprise?

Last Updated: 21. November 2023By

Do you have Nvidia in your portfolio?

If so, congratulations! The stock is a core investment that should be held in the portfolio for several years.

But what about the short term? Tonight, Nvidia’s quarterly results will be released.

That the company reports later than other tech giants is due to a different financial year: It does not end in December, but in January.

Nvidia’s statistics are impressive: For 2 years, Nvidia has beaten analyst expectations for revenue in each quarter. And even the profit forecasts were mostly better than the analysts‘ estimates.

Hardly any company is growing as dynamically as Nvidia. Many investors believe that Nvidia is now too expensive due to the +350% rally since October 2023.

I don’t share this opinion: The company has almost a monopoly on AI chips and more demand in almost all areas than it can supply.

Growth rates are still dynamic. Analysts expect earnings per share of $3.67. In the previous quarter it was only $0.58. That’s more than a sixfold increase in profits and relativizes the strong rise in the share price.

And what about the future? That’s rosy too, according to analyst estimates.

For the financial year ending in January, earnings of $10.83 per share are expected – last year it was only $3.27.

And for the 2025 financial year, analysts are forecasting a profit of $17.30 per share. Based on the high level of the current year, this would still be an increase of almost +60%!

Hardly any company is growing as dynamically as Nvidia from such a high level!

Can Nvidia exceed the high targets again? Given these impressive numbers, I don’t think Nvidia is overvalued at the current level. However, there is one danger: Expectations of the company have been raised ever higher in recent times and never disappointed. No matter how high the estimates were, they were always exceeded.

Should Nvidia ever fail to reach the estimates or โ€œonlyโ€ slightly exceed them, there could be an immediate sell-off.

As always, I advise you: Don’t jump in just before the quarterly results.

Wait to see how Nvidia presents itself tonight and then draw your own conclusions as to whether the stock is a buy or not.