Why Nvidia (NVDA) is Poised to Beat Earnings Estimates Again

Core Viewpoint - Nvidia is well-positioned to continue its earnings-beat streak in upcoming reports, particularly due to its strong performance in the semiconductor industry, specifically in graphics chips for gaming and artificial intelligence [1]. Earnings Performance - For the most recent quarter, Nvidia reported earnings of $1.30 per share, exceeding the expected $1.24 per share, resulting in a surprise of 4.84% [2]. - In the previous quarter, Nvidia's earnings were $1.05 per share against an expectation of $1.00 per share, leading to a surprise of 5.00% [2]. Earnings Estimates and Predictions - Nvidia's earnings estimates have been trending higher, supported by its history of earnings surprises, with a current Earnings ESP of +2.18%, indicating bullish sentiment among analysts [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong likelihood of another earnings beat in the upcoming report [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7].