Chipmaking giant Nvidia (NAS100: NVDA) has released its latest earnings this week, with management guidance being the target.
NVDA – Daily Chart
NVDA shares have clear resistance at $192.72, and this will be the deciding price for the week ahead.
Nvidia’s earnings will be released on Wednesday after the US market closes.
“We’ll always be looking at whether they beat their revenue guidance this quarter and/or exceed consensus next quarter. Those figures are $65.0 billion, which was management’s guidance, for the January 2026 quarter, and $71.7 billion, which is the FactSet consensus estimate, for the current quarter ending in April,” Morningstar’s Brian Colello noted.
Another key metric will be gross margin guidance of 75%, which could indicate the company’s pricing power strength. Analysts’ expectations for the fourth quarter are earnings per share of $1.152, with revenue of $65.7 billion. That would see the company deliver strong year-over-year earnings growth of 70%.
Nvidia is still a very important stock for the overall index as the company is heavily weighted in large ETF funds. The company has a weighting of around 7-8% in some large S&P 500 ETF holdings, which is a huge number compared to the 499 other potential holdings. A beat or a miss on earnings could send the overall index into a sharp rally or drop that drags the rest of the market with it.
Nvidia’s release will be more important after tech stocks like Microsoft and Amazon.com have struggled following their own Q4 results.
“They really need to blow it out as far as the topline is concerned. They really need to blow it out as far as the net profit is concerned. And they kind of need to come around and let us feel reassured that the AI trade is still in its early innings,” analyst Ken Mahoney said.
Investors will be looking to see whether demand from US tech companies for Nvidia’s chips has changed, while there is also potential for demand from recent deals in the Middle East and Asia.
