NVDA: Nvidia Stock Slides Nearly 2% as Investors Position for Blowout Earnings Report

Recent AI plays didn’t do so well with Arm posting underwhelming guidance this week. Nvidia faces a high bar.

• Nvidia stock NVDA dropped nearly 2% on Thursday as investors reshuffled their AI plays, anticipating the chip maker’s April-quarter earnings report coming May 22. Not a great performance so far from the AI-related stocks. Chip designer Arm ARM tanked 9% in pre-market Thursday but made up for it and wrapped up regular trading down 2.3%. Earlier this month, AI server maker Super Micro SMCI sank 14% on disappointing earnings.
• Stakes are high for the AI heavyweight — Nvidia is up against Wall Street’s lofty expectations for profit growth of 38% year-over-year. Revenue is expected to hit $22.1 billion, up 207% from last year’s $7.19 billion. More importantly, perhaps, will be the chip giant’s forward guidance. Investors are gearing up for a huge leap in revenue and earnings projections for the year ahead. Expected sales figures will provide clues into how big Big Tech is going to spend on building out the AI infrastructure, powered by Nvidia’s monster chips.
• Shares of Nvidia have staged a nice recovery from a short-lived dive near $750 a piece. Early on Friday, the stock is poised to open for trading at $888 per share, or about $60 away from the record high around $950 a pop. Nvidia has knocked it out of the park this year with roughly 85% share-price growth. Nvidia is the only one of the mighty Magnificent Seven club to report quarterly earnings this season.