Technology giant NVIDIA Corporation NVDA reports fourth-quarter financial results after market close Wednesday.
The earnings print is one of the most highly anticipated reports from a public company in years and CNBC host Jim Cramer is among the public figures celebrating earnings day as a holiday of sorts.
What Happened: Analysts expect Nvidia to report fourth quarter revenue of $20.62 billion, compared to revenue of $7.19 billion in the prior year period, according to data from Benzinga Pro.
The revenue estimate comes in higher than the $18.12 billion reported in the third quarter. Nvidia has beaten revenue estimates from analysts in five straight quarters and analysts have been surprised by how big the beats and and subsequent upward revisions in guidance have been.
Analysts expect Nvidia to report fourth-quarter earnings per share of $4.64 compared to earnings of 88 cents per share in the fourth quarter last year. Nvidia has beaten earnings per share estimates in the last four straight quarters.
CNBC host and financial personality Jim Cramer has been a vocal fan of Nvidia to years, even once naming one of his pets after the company.
"Today is National Nvidia day and I want you to remember that Jensen Huang is not sitting there sweating the quarter. He has bigger things in mind," he tweeted Wednesday.
Cramer also brushed off a user on X, formerly known as Twitter, who showed shares of Nvidia down 1.5% on Wednesday.
"I think we wait until it reports first later tonight, but I am old fashioned."
Along with celebrating Wednesday as a holiday, Cramer also appeared to compare Nvidia CEO Jensen Huang to musician and global superstar Taylor Swift. A picture showed Cramer broadcasting on the floor of the New York Stock Exchange in front of a sign that said "Fearless (Jensen's Version)."
The sign, which included an image of a music record, uses the Swift song and version in parentheses that the singer uses on her remastered albums and songs. Cramer called the mention of Swift "the comparison you never saw coming."
Cramer also appeared to clap back at people upset with the Swift reference and analogy.
"Oh, and about Jensen Huang being Taylor Swift: I will use any analogy to get homegamers to understand this man's power and success and brilliance. We are in a new age and unless you can reach younger investors you are a goner."
Related Link: Tech’s Moment Of Truth: Why Josh Brown Says The Reaction Is What Matters When Nvidia Reports Q4 Earnings
Why It's Important: On Tuesday, Cramer told investors that a drop of more than 6% for Nvidia shares the day before earnings could represent a good buying opportunity.
"I think you buy some if you don't own any," Cramer said. "Maybe buy some more tomorrow (Wednesday)."
Nvidia's earnings report could provide a test for the market with technology stocks and companies with growing interest and use cases for artificial intelligence trading higher over the last year and outperforming the market.
After outperforming estimates and raising guidance several quarters in a row, a miss or a beat and no guidance raise could spook investors and the market and also hurt peer companies and market indexes.
Nvidia passed the $1 trillion market capitalization level in 2023 and briefly passed the market caps of Alphabet and Amazon recently to become the fourth most valuable public company for a short period. Nvidia now ranks sixth by market cap, valued at $1.715 trillion.
Nvidia is the third largest holding in the SPDR S&P 500 ETF Trust SPY, which tracks the S&P 500 Index. The tech stock is also the fourth-largest holding in the Invesco QQQ Trust QQQ, which tracks the Nasdaq 100. Nvidia represents 4.1% and 5.1% of assets in the SPY and QQQ respectively.
NVDA Price Action: Nvidia shares trade at $682.89 versus a 52-week trading range of $204.21 to $746.11. Shares of Nvidia are up over 230% in the last year and more than 1,650% in the last five years. Year-to-date in 2024, Nvidia shares are up 40%.
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