Nvidia's Stock Rises as Earnings Forecasts Raise

 Important lessons learned

The rising anticipation for Nvidia's earnings announcement on Wednesday may make it more difficult for the AI chipmaker to win over investors.

In only the previous 48 hours, consensus projections for Nvidia's second-quarter revenue and earnings increased by hundreds of millions of dollars. 

With Friday's gain of over 4%, Nvidia's stock has increased by over 160% from the year's beginning.

The anticipation surrounding Nvidia's (NVDA) results report on Wednesday is growing, which may make it more difficult for the artificial intelligence (AI) darling to win over investors. 

Visible Alpha believes that Nvidia's net income is expected to increase by $120 million to $14.95 billion, while consensus predictions for the company's second-quarter revenue increased by $170 million to $28.84 billion in just the last 48 hours. 

Although some experts have long expressed concerns about investors' expectations surpassing Wall Street predictions, whisper figures could be substantially higher. 

Anticipating Another "Drop the Mic" Event  

Wedbush analysts predicted "another drop the mic performance from Nvidia" on Thursday, citing indications of "huge business AI demand" and cloud giant expenditure, including Alphabet's Google (GOOGL) and Amazon (AMZN), as positive trends for the chipmaker. 

They are not alone either, as analysts from Raymond James, KeyBanc, and other places have stated that they anticipate a robust quarter from the chipmaker in spite of rumors that Nvidia's Blackwell AI chip is delayed. 

Visible Alpha tracks over 95% of analysts who rate the company as a "buy," with a consensus price objective of $144.83, which is 12% higher than Friday's closing price. 

On Friday, Nvidia's stock rose 4.6%, closing at $129.37. The stock has increased by almost 160% from the year's start.