Nvidia’s shares retreated by nearly half a trillion dollars in the seven trading sessions leading up to its fiscal second-quarter results, underscoring investor caution ahead of the report due later on Wednesday.
The Santa Clara-based chipmaker’s forward price-to-earnings ratio stands at 23.6x, with consensus revenue estimates for the quarter at $103.8 billion. Earnings per share are projected to rise 84.7% year-over-year, while Wall Street’s average price target is $304.73, implying 43.1% upside from Tuesday’s close. Gross margins are expected to remain near 74%, with the stock trading at a trailing P/E of 32.5x and a price-to-sales multiple of 19.9x.
InvestingPro’s quantitative models estimate a fundamental fair value for Nvidia at $260.05, representing a 22.1% premium to Tuesday’s closing price of $213. The firm’s beta is 2.22, and historical data shows Nvidia has pulled back in six of its last seven post-earnings releases.
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