As Nvidia Corporation (NASDAQ:NVDA) prepares to release its first-quarter earnings on Wednesday, a wealth manager has expressed skepticism about the stock's potential for growth, while Wedbush analyst Dan Ives holds a contrasting view.
What Happened: On CNBC's Last Call on Tuesday, Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, stated that Nvidia's stock is "fully valued at the current price," and he believes that the stock may struggle to rise in the short term, despite meeting or exceeding expectations.
However, Ives holds a different opinion and strongly disagrees with Gerber's assessment, stating, "We strongly disagree with @GerberKawasaki take on Nvidia...this just the start of AI Revolution as we expect to see tomorrow night."
We strongly disagree with @GerberKawasaki take on Nvidia...this just the start of AI Revolution as we expect to see tomorrow night @LastCallCNBC
— Dan Ives (@DivesTech) May 21, 2024
Why It Matters: Nvidia is anticipated by analysts to announce a first-quarter revenue totaling $24.60 billion, according to data from Benzinga Pro. In the first quarter, analysts foresee Nvidia posting earnings per share of $5.58, a significant increase from $1.09 per share in the same period last year. Nvidia has surpassed analysts' earnings per share predictions in the past five consecutive quarters and eight of the last 10 quarters.
Traders are also bracing for a significant shift in Nvidia's stock price following the earnings report, with options markets indicating an expected 8.7% swing in the stock, as per Benzinga. This could result in a market cap fluctuation of $200 billion, surpassing the market cap of about 90% of S&P 500 companies.
NVDA Price Action: Nvidia shares ended Tuesday's regular session 0.64% higher at $953.86. The shares were largely unchanged in the after-hours trading.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.