Nvidia Investors Eye CES, Health Care Conferences and Important Earnings

NVIDIA's Performance and Market Impact - NVIDIA's stock soared 171% in 2024, significantly outperforming the S&P 500's 25% return [2] - The company accounted for more than one-fifth of the S&P 500's 2024 gain due to its massive weighting in the index [2] - Despite strong earnings beats in August and November, the stock traded sideways through the end of 2024 [2] AI and Industry Trends - AI continues to be a dominant theme, with over 40% of S&P 500 companies citing AI on earnings calls by Q2 2024 [6] - Non-tech firms are increasingly adopting AI, as highlighted by NVIDIA CEO Jensen Huang's statement that "every industry will become a technology company" [5][6] - The semiconductor industry, particularly NVIDIA, has been a major beneficiary of the AI-driven tech revolution [1] Upcoming Events and Catalysts - NVIDIA's CEO Jensen Huang will deliver a keynote at CES on January 6, 2025, showcasing robotics innovations, RTX 50xx gaming graphics cards, and potential entry into the AI PC market [4] - The company will also participate in a fireside chat with analysts at J P Morgan and hold a financial analyst Q&A during CES [4] - Investors are closely watching for updates on Blackwell chips, including potential defects and production delays, which impacted shares in the second half of 2024 [4] Financial Outlook and Analyst Expectations - NVIDIA is expected to report fiscal Q4 2025 results on February 26, with consensus estimates calling for $0 85 in non-GAAP EPS, marking 64% bottom-line growth [9] - For FY 2025, per-share earnings are expected to rise by 128% to $2 95, with 50% EPS growth projected for the following year [9] - Bank of America forecasts a 50% sales increase for NVIDIA in 2025, potentially making it the fastest top-line grower in the S&P 500 [9] Market Volatility and Investor Focus - NVIDIA's implied volatility heading into CES was 45%, down from peak levels of 70-80% in August and September 2024 [4] - Investors are bracing for potential volatility around key events, including CES and the J P Morgan Healthcare Conference, as well as the upcoming Q4 earnings report [4][10]