Nvidia shares rise as earnings expectations rise

The chipmaker could offer “another dip in microphone performance,” Wedbush analysts say

Key recommendations

• Expectations for Nvidia’s earnings release on Wednesday are rising, which could make it harder for the AI ​​chipmaker to impress investors.

• Consensus estimates for Nvidia’s second-quarter revenue and earnings have risen by hundreds of millions of dollars in the past 48 hours alone.

• Shares of Nvidia gained more than 4% on Friday and are up about 160% since the start of the year.

Expectations for Nvidia (NVDA) earnings released Wednesday are on the rise, which could make it harder for artificial intelligence (AI) to impress investors.

Consensus estimates for Nvidia’s second-quarter revenue rose $170 million to $28.84 billion in the past 48 hours alone, according to estimates compiled by Visible Alpha, while net income forecasts rose up $120 million to $14.95 billion.

The whispered numbers could be even higher, with some analysts long expressing concern about investor expectations outpacing Wall Street projections.

Expecting another “Microphone performance drop”

Analysts at Wedbush said Thursday they expect “another drop in Nvidia’s mic performance,” citing signs of “massive enterprise AI demand” and spending by cloud giants like Amazon (AMZN) and Google Alphabet (GOOGLE), all trends that would benefit the chipmaker.

They’re not alone, as analysts at Raymond James, KeyBanc and elsewhere recently said they expect a strong quarter from the chipmaker as well, despite concerns over a reported delay of Nvidia’s Blackwell AI chip.

More than 95% of analysts tracked by Visible Alpha have a “buy” rating on the stock, with a consensus price target of $144.83, 12% above Friday’s close.

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Shares of Nvidia gained 4.6% to $129.37 on Friday. The stock has gained about 160% since the start of the year.

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