Nvidia (NVDA) has solidified its position as the world’s largest company with a market cap exceeding $4.8 trillion, having briefly surpassed $5.2 trillion in April. With Q1 earnings set to be released on May 20, analysts anticipate a robust performance, projecting revenues of $78.8 billion—up 78.6% year-over-year—and earnings per share of $1.77, reflecting a staggering 118.5% increase.
Despite a remarkable 73% rise in share price over the past year, Nvidia’s stock has historically underperformed following earnings announcements, often declining even after beating analyst expectations. For instance, shares dropped more than 9% in the two days post-Q4 earnings in February, and similar patterns were observed after previous reports.
Given this trend, market professionals may find it prudent to hold off on purchasing Nvidia shares until after the May 20 report, as historical data suggests potential for a post-earnings dip, allowing for a more favorable entry point.
Source: fool.com