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Nvidia faces high expectations ahead of earnings after recent misses
Yahoo Finance cites data showing Nvidia shares have fallen on earnings in six of the past eight quarters, including each of the last four.
Nvidia is set to report earnings Wednesday evening, with market expectations already positioned for a strong print, as shares have responded negatively to earnings in six of the past eight quarters, including the last four, according to Yahoo Finance AlphaSpace analysis.
The pre-earnings setup also reflects the view that investors may face limited downside risk tied to Nvidia’s growing investment portfolio, amid higher valuations for many privately held AI names, the outlet said.
UBS analyst Tim Arcuri told investors that while narratives around AI infrastructure spend, return, and credit risk are largely outside Nvidia’s control, the company’s results matter more for confidence in its earnings path. Arcuri expects investors to gain greater confidence in a path to $15+ EPS in 2027 and $20 EPS in 2028.
Separately, HSBC analyst Frank Lee argued that the next major re-rating for Nvidia may hinge less on traditional earnings and product roadmap messaging, and more on a new narrative. He pointed to Nvidia’s claim that open source models now represent the second most popular category by token generation, saying that could support the rise of agentic AI and on device applications.