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Nvidia faces high expectations ahead of its upcoming earnings report
The stock has fallen on earnings in 6 of the past 8 quarters, and the market is also bracing for limited downside given the valuation support for AI-related private companies.
Nvidia is set to report results on Wednesday evening, with expectations elevated after a pattern of sharp moves following prior quarters. According to Yahoo Finance AlphaSpace analysis cited in the preview, Nvidia shares have fallen in response to earnings in six of the past eight quarters, including each of the last four.
The preview also argues that investors are positioned for a strong report and an especially bullish tone from CEO Jensen Huang, given what the market is pricing in for the company’s growing investment portfolio. It notes that investors face minimal downside risk tied to valuations seen across artificial intelligence names, pointing to examples like Anthropic.
UBS analyst Tim Arcuri, quoted in the Yahoo Finance preview, said the debate around AI infrastructure spending and related credit risk is largely outside Nvidia’s control, making the reported figures more important than the narrative. Arcuri said he expects investors to gain more confidence in a path to $15+ earnings per share in 2027 and $20 in 2028, which he believes could support continued upside.
The piece also highlights how the next potential “rerating” may depend less on near-term earnings or product messaging, and more on a new narrative. HSBC analyst Frank Lee said open-source models represent the second most popular category by token generation, and he linked a shift toward small language models to an expansion in the total addressable market for Nvidia infrastructure beyond only frontier labs, potentially opening up a wider set of enterprise and on-device use cases.