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As of Tuesday’s close, Nvidia shares were down more than 40% for the year.
Investors aren’t sure how quickly Nvidia’s business can recover after a recent series of problems. When the company releases its most recent financial results and outlook on Wednesday after the market closes, it will receive a crucial update.
Nvidia (NVDA) pre-announced poor statistics for its second fiscal quarter earlier this month. The company at the time forecast revenue for the July quarter to be $6.7 billion, significantly lower than its previous forecast of $8.1 billion. He highlighted weaker-than-expected gaming segment revenue as well as a challenging macroeconomic climate, adding that “challenging market conditions” are expected to persist in the fiscal third quarter.
Since then, Nvidia’s consensus valuation has been falling according to Wall Street analysts. They now expect the company to post revenue for the July quarter of $6.7 billion, in line with Nvidia’s most recent expectations, and adjusted earnings per share of 50 cents. Revenue for the current quarter is expected to be $6.9 billion, analysts said.
Nvidia’s future product pipeline was cited by Bernstein analyst Stacy Rasgon in reiterating his outperformance recommendation on the stock earlier this week.
Once we overcome the current challenges, we can find reasons for optimism, he wrote.
However, some other analysts are concerned that Nvidia’s graphics card market will continue to falter due to the company’s exposure to cryptocurrency mining, the high cost of its high-end cards, and the consequences of a failing global economy. .
As of Tuesday’s close, Nvidia shares had fallen 42% this year, compared to a 28% decline in the
The performance of the ICE Semiconductor index is tracked by the iShares Semiconductor (SOXX) ETF.
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