As investors worldwide are waiting for the new quarterly earnings report from the technology behemoth Nvidia (NASDAQ: NVDA), analysts from Goldman Sachs (NYSE: GS) believe the report could trigger a $300 billion swing in its market value – in either direction.
Specifically, the finance experts have observed that Nvidia stocks could witness a significant $298 billion swing in market value upon publishing the earnings results on August 28, according to a recent note from Goldman Sachs’ trading desk, Business Insider reports.
As per the banking organization’s data, the potential swing in Nvidia’s market value would represent an over 9% move in the $3.17 trillion semiconductor giant’s stock price, which at press time stood at $128.30, and a solid growth quarter could lead to a massive move.
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Nvidia could surpass expectations
Furthermore, in the words of Goldman Sachs’ trading desk, headed by managing director Scott Rubner, the “bar for Nvidia this earnings season is a lot lower than it has been in recent quarters given fundamental selling in tech,” who also added:
“Can you imagine if NVDA beats expectations on Wednesday? (…) Info tech was net sold for the 4th straight week (13 of the last 16) and saw the largest net selling in 2 months as the sector was net sold in every region, driven by both long and short sales. The prime book is now under-weight Info Tech vs. the MSCI World Index by -9.7% – at the lowest level on our record.”
Elsewhere, Wall Street analysts generally expect strong numbers from Nvidia’s upcoming earnings report, predicting earnings per share (EPS) at $0.64, which would represent a 134% year-over-year increase from the same period last year, as well as a revenue of $28.71 billion, up 113%.
Bearish signals for Nvidia stock
On the other hand, Nvidia’s CEO Jensen Huang has sold over $128.2 million worth of NVDA shares in five different transactions over the previous 30 days, each amounting to 240,000 Nvidia stocks, sparking fears that he might have insider information regarding a weak earnings report.
However, it is important to note that Huang preannounced his trades through the Rule 10b5-1 agreement, stating the stock date, amount, and price at the time of the trade, which suggests that he plans to run the trades until March 31, 2025, reaching 600,000 sold shares.
That said, several hedge funds had partially divested from Nvidia during the second quarter of 2024, including Stanley Druckenmiller’s Duquesne Family Office (3% decrease), David Tepper’s Appaloosa Management (84% decrease), and Lee Ainslie’s Maverick Capital (2.86% decrease).
At the same time, the likes of Elliott Management have completely divested from their stakes in the chipmaker, referring to the artificial intelligence (AI) running the show as “overhyped” and arguing that Nvidia stocks are in a “bubble land” as Finbold reported on August 6.
Nvidia stock price analysis
Meanwhile, the price of Nvidia at the moment amounts to $128.30, recording a 1.46% increase on the day, accumulating a weekly gain of 0.77%, as well as advancing 14.97% on its monthly chart, according to the most recent data retrieved on August 28.
All things considered, Nvidia stock could, indeed, move in either way following the earnings report, but the odds are that this movement will happen in the upward direction. However, trends in the stock market can easily change, so doing one’s own research is critical when investing.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
