Nvidia’s Revenue Pattern Has Become Its Biggest Risk

Summary:

  • Nvidia Corporation’s revenue and guidance have consistently increased by $4 billion per quarter, beating estimates by $2 billion, creating predictability in its earnings reports.
  • The stock’s lack of surprise and high implied volatility levels have led to a decline in its trading price, despite strong financial performance.
  • Short sale volume has been significant, with traders buying back positions, potentially supporting the stock price temporarily.
  • Nvidia’s growth is expected to slow, making its high valuation questionable, and any break in its predictable pattern could negatively impact the market.

Sunrise with Fisherman

William S Jones

To no surprise, NVIDIA Corporation (NASDAQ:NVDA) just reported revenue and guidance that was as predictable as the Sun rising over the eastern horizon every morning. The company has had a predictable pattern of increasing guidance


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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