NVIDIA will report its Q2 results after today's closing bell, followed by a conference call at 17:30 ET.
The Capital IQ consensus expects the manufacturer of graphics processing units to report a 40.7% yr/yr contraction in EPS to $1.15 on an 18.5% yr/yr decrease in revenue to $2.55 bln.
NVIDIA guided for Q2 revenue between $2.50 bln and $2.60 bln when it reported Q1 results on May 16.
NVIDIA is feeling competition from AMD, considering the company has already updated its RTX lineup from a year ago. NVIDIA's decision to continue tinkering with its latest product lineup suggests that gross margin is likely to feel some pressure.
The company reduced its inventory in Q1 from a record that was reached in Q4. Additional progress on this front would be encouraging.
NVIDIA is one of few chipmakers that have not rebounded from the industry-wide swoon at the end of 2018. The stock bottomed in the 130 area in late December, and it has traded in a range since then. Shares hit a 2019 high (193.47) in April, but they are now closer to their December low than the April peak.
NVIDIA trades at 23.9x forward earnings expectations, which represents a discount to AMD's 34.6x forward multiple.
If you liked this content please click the ❤️ below and/or share it!
TOTALLY FREE Trading Packet!
This packet will explain to you in depth how I trade and how I manage my risk.
I am happy to share this. Just use the code KPAKFRAUD at checkout and you will get it TOTALLY FREE. You will pay absolutely nothing.
Check out the latest episode from my podcast below.
If you'd like to follow my trades in real time click the "Join Now" button at the bottom of the page. For those that will and have asked, use the code 1ST on checkout for a discount with no commitment beyond one month.