Nvidia's Earnings Report Could Shake the Stock Market on February 26
Nvidia is set to release its latest earnings report on February 25, 2024, with analysts forecasting strong results. The company, now the world's largest by market capitalisation, plays a major role in global stock indexes like the S&P 500 and Nasdaq. Investors are watching closely, as the announcement could trigger significant market movement the following day.
Over the past three quarters, Nvidia's financial performance has been mixed but generally strong. Revenues came in at $26.974 billion (slightly above forecast), $60.922 billion (2.81% above expectations), and $130.497 billion (0.94% higher than predicted). Earnings before interest, taxes, depreciation, and amortisation (EBITDA) varied, with figures of $5.768 billion (7.36% below forecast), $34.480 billion (6.36% above), and $83.317 billion (1.16% below). Net income also showed growth, reaching $4.368 billion, $29.760 billion, and $72.880 billion, each slightly exceeding expectations.
Earnings per share (EPS) followed a similar trend, with results of $0.17, $1.19, and $2.94—mostly in line with or above analyst predictions. For the upcoming report, Wall Street expects EPS of $4.58 and revenue of $20.45 billion. The company's stock, despite its rapid growth, remains relatively undervalued compared to peers and the broader market.
Analysts project continued expansion, with fiscal year 2026 growth estimated at 57% year over year and 65% for fiscal year 2027. This optimism stems from rising AI investment and advancements in chip technology. Nvidia's performance often ripples across the sector, affecting competitors like Broadcom and AMD, as well as suppliers such as Taiwan Semiconductor.
Given the high expectations, a strong earnings report could push Nvidia's stock price higher, making it an attractive option for investors ahead of the announcement.
The February 26 stock market reaction will likely hinge on Nvidia's earnings results. If the report meets or exceeds forecasts, the company's shares could climb, reinforcing its position as a key driver of market trends. The broader tech sector, including rivals and partners, may also see movement in response.
