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Nvidia is losing ground: investors are preparing for volatile movements in the GPU manufacturer's shares

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Nvidia's quarterly results are expected to be key to sustaining the AI giant's rally this year and next.

Written by UNN with reference to Bloomberg and FXstreet.

Details

Nvidia investors are preparing for volatile movements in the company's shares after the chip titan reports its third-quarter earnings. The markets estimate that the stock will fluctuate by 8%. A corresponding fluctuation would mean a $300 billion gain or loss in market value.

Intel міг купити Nvidia за 20 млрд доларів у 2005 році: чому зірвалася угода25.10.24, 16:23

At the same time, investors are hoping that the previous “strong” forecasts will come true and will be able to “erase” any partial disappointment in the quarterly results, which, according to Bloomberg Intelligence, could have been affected by logistical problems.

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Nvidia's gross profit margin fell to 75.1% in the second quarter from 78.4% in the first quarter. Thus, costs will also be in the spotlight, although analysts expect the profitability in the third quarter to likely fall to 74.4%; Nvidia expected an increase in operating expenses (at least $3 billion) in the third quarter.

Recall

NVIDIA is planning to release a new Blackwell GPUthat could be a breakthrough in the field of artificial intelligence. Analysts compare the potential impact of this chip to the release of Apple's first iPhone.

AMD услід за Nvidia стає компанією ШІ-чіпів - ЗМІ31.07.24, 15:04

Ihor Telezhnikov

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