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NVIDIA's Q4 Earnings Blowout: Buy, sell or hold?
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Nvidia expected to grow revenue 237% in the Qtr. Will history repeat and NVDA rally on result day?

Nvidia expected to grow revenue 237% in the Qtr
The third biggest company in the world Nvidia $NVIDIA(NVDA.US)$ with a market value of $1.8 trillion, has seen its shares rise 49% this year. It reports quarterly results on Feb 22 and its outlook. Here is what you could expect.
Revenue growth is expected to rise over 200% for the second straight quarter and lift 237% in Q4 (consensus), buoyed by soaring demand for its data center business, which accounts for 81% of revenue. In large caps, there are no other growth rates like this in the world.
Also note, Nvidia's clients are the biggest businesses in the world. 15% of Nvidia's revenue from is Microsoft $Microsoft(MSFT.US)$ , 13% of Nvidia's revenue is from Meta $Meta Platforms(META.US)$ , 6.2% is from Amazon $Amazon(AMZN.US)$, 5.8% is from Alphabet $Alphabet-A(GOOGL.US)$ , 5.9% is from Dell.
We know AI demand remains strong, and while Nvidia's client book grows, it also continues to innovate and upgrade its chips, and charge higher prices for its chips too, with graphic processing chips speeds also improve. Nvidia's clients also include BYD $BYD COMPANY(01211.HK)$ , Tencent $TENCENT(00700.HK)$ , LG, Cisco $Cisco(CSCO.US)$ , Deer & Co $Deere(DE.US)$ . And the list goes on (see below)
A result beat and earnings upgrade would fuel a rally in the stock. On the flip side, disappointment could spur a selloff as Nvidia is trading at multiple of 94 times forward earnings.
Bets are on for a 11% share price move on result day
If you looked at options pricing, it's suggesting that there are more bets of a rally. Pricing also suggests Nvidia shares could move 11% on the day of reporting results. And if history repeats itself and Nvidia beats expectations like it has in its last three reports, then you could expect its shares to run up.
Source: Bloomberg, moomoo
Source: Bloomberg, moomoo
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Moomoo Official Market Strategist
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