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Nvidia's All-Time High Before Earnings: ETFs in Focus
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Nvidia (NVDA - Free Report) is preparing to report its third-quarter earnings on Nov 21 after the market closes. The company's stock reached a record high on Nov 20 due to heightened interest in artificial intelligence (AI). This surge in interest is partly driven by events such as Sam Altman's departure from OpenAI and his move to Microsoft (MSFT - Free Report) . Nvidia, a leading name in the AI sector, has become a focal point for investors in 2023.
Strong Financial Performance and Guidance
The company's financial performance has been a key factor in its stock's success. In August, Nvidia's stock hit a record high after its second-quarter results surpassed Wall Street’s expectations in terms of revenue, earnings per share, and forward guidance. This performance led to optimistic projections for the company's future, with Bank of America research analyst Vivek Arya expecting Nvidia to continue exceeding consensus in its upcoming report, as quoted on Yahoo Finance.
Challenges and Opportunities
Despite a brief stumble in stock performance following concerns over Nvidia's valuation and the impact of chip restrictions in China, the company has managed to maintain a strong market presence. Nvidia has reassured investors about the minimal near-term impact of new restrictions, and analysts like Ruben Roy from Stifel see significant global demand for Nvidia's offerings, particularly in AI, outside of China.
Earnings Whispers
Nvidia currently has a Zacks Rank #1 (Strong Buy) and an Earnings ESP of +1.84%. According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. The Zacks Consensus Earnings and Sales estimates for the to-be-reported quarter for Nvidia are $3.36 and $16.12 billion, respectively.
More Rally in the Cards?
Nvidia currently has an average brokerage recommendation (ABR) of 1.13 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 36 brokerage firms. The current ABR compares to an ABR of 1.13 a month ago based on 36 recommendations.
Of the 36 recommendations deriving the current ABR, 32 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 88.89% and 8.33% of all recommendations. A month ago, Strong Buy made up 88.89%, while Buy represented 8.33%.
Based on short-term price targets offered by 34 analysts, the average price target for Nvidia comes to $631.41. The forecasts range from a low of $460.00 to a high of $1,100.00. The average price target represents an increase of 25.2% from the last closing price of $504.20.
Investor Sentiment
Evercore ISI's Julian Emanuel highlights Nvidia's dominant market position, warning investors of potential volatility post-earnings. This suggests that Nvidia's performance and guidance could have a substantial impact on investor sentiment and market trends in the tech sector.
ETFs in Focus
Nvidia has considerable exposure to funds like GraniteShares 1.5x Long NVDA Daily ETF (NVDL - Free Report) , VanEck Vectors Semiconductor ETF (SMH - Free Report) , AXS Esoterica NextG Economy ETF (WUGI - Free Report) , Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) and Pacer Data and Digital Revolution ETF (TRFK - Free Report) . These funds should be closely-watched amid Nvidia’s earnings release.
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)
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Nvidia's All-Time High Before Earnings: ETFs in Focus
Nvidia (NVDA - Free Report) is preparing to report its third-quarter earnings on Nov 21 after the market closes. The company's stock reached a record high on Nov 20 due to heightened interest in artificial intelligence (AI). This surge in interest is partly driven by events such as Sam Altman's departure from OpenAI and his move to Microsoft (MSFT - Free Report) . Nvidia, a leading name in the AI sector, has become a focal point for investors in 2023.
Strong Financial Performance and Guidance
The company's financial performance has been a key factor in its stock's success. In August, Nvidia's stock hit a record high after its second-quarter results surpassed Wall Street’s expectations in terms of revenue, earnings per share, and forward guidance. This performance led to optimistic projections for the company's future, with Bank of America research analyst Vivek Arya expecting Nvidia to continue exceeding consensus in its upcoming report, as quoted on Yahoo Finance.
Challenges and Opportunities
Despite a brief stumble in stock performance following concerns over Nvidia's valuation and the impact of chip restrictions in China, the company has managed to maintain a strong market presence. Nvidia has reassured investors about the minimal near-term impact of new restrictions, and analysts like Ruben Roy from Stifel see significant global demand for Nvidia's offerings, particularly in AI, outside of China.
Earnings Whispers
Nvidia currently has a Zacks Rank #1 (Strong Buy) and an Earnings ESP of +1.84%. According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. The Zacks Consensus Earnings and Sales estimates for the to-be-reported quarter for Nvidia are $3.36 and $16.12 billion, respectively.
More Rally in the Cards?
Nvidia currently has an average brokerage recommendation (ABR) of 1.13 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 36 brokerage firms. The current ABR compares to an ABR of 1.13 a month ago based on 36 recommendations.
Of the 36 recommendations deriving the current ABR, 32 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 88.89% and 8.33% of all recommendations. A month ago, Strong Buy made up 88.89%, while Buy represented 8.33%.
Based on short-term price targets offered by 34 analysts, the average price target for Nvidia comes to $631.41. The forecasts range from a low of $460.00 to a high of $1,100.00. The average price target represents an increase of 25.2% from the last closing price of $504.20.
Investor Sentiment
Evercore ISI's Julian Emanuel highlights Nvidia's dominant market position, warning investors of potential volatility post-earnings. This suggests that Nvidia's performance and guidance could have a substantial impact on investor sentiment and market trends in the tech sector.
ETFs in Focus
Nvidia has considerable exposure to funds like GraniteShares 1.5x Long NVDA Daily ETF (NVDL - Free Report) , VanEck Vectors Semiconductor ETF (SMH - Free Report) , AXS Esoterica NextG Economy ETF (WUGI - Free Report) , Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) and Pacer Data and Digital Revolution ETF (TRFK - Free Report) . These funds should be closely-watched amid Nvidia’s earnings release.
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)