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Earnings Preview: What To Expect From Nvidia On Tuesday

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Nvidia Corp. is scheduled to release earnings after Tuesday's close. The stock hit a record high of $120.92/share in February 2017 and is currently trading near $104/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview: Jan-March 2017

Nvidia is expected to earn $0.66/share on $1.91 billion in revenue. Meanwhile, the so-called Whisper number is $0.72. The Whisper number is the Street's unofficial view on earnings.

What The Pros Are Saying:

"Long term prospects for the company remain strong, and the current stock price doesn't reflect that, yet. Management's earnings estimates also support a strong earnings season and price increase. With a strong track record of beating earnings, look for NVDA to rally."

Mitch Dunn, Advisor Solutions, Riskalyze.com

"Nvidia has been a huge winner for us over the past few years. There's no question it is a big leading stock and its latest consolidation is a strong buying opportunity." Amy Thomas, Private Client Services, FindLeadingStocks.com

Company Profile & Various Businesses:

Here is a brief company profile courtesy of Thomson Reuters Eikon:

Nvidia Corporation, incorporated on February 24, 1998, focuses on personal computer (PC) graphics, graphics processing unit (GPU) and also on artificial intelligence (AI). The Company provides service to its customers through PC, mobile and cloud architectures. The Company operates through two segments: GPU and Tegra Processor, which are based on a single underlying architecture. The Company's processor has created platforms that address four markets: Gaming, Professional Visualization, Datacenter, and Automotive. The Company's GPU product brands are aimed at specialized markets, including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers, and GRID for cloud-based visual computing users. The Company's Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core central processing units (CPUs) to drive supercomputing for mobile gaming and entertainment devices, as well as autonomous robots, drones and cars.

Competition:

The Company competes with Advanced Micro Devices, ARM Holdings plc, Imagination Technologies Group plc, Intel Corporation, Xilinx, Inc., Ambarella, Inc., Apple, Inc., Broadcom Ltd., Mobileye N.V., Qualcomm Incorporated, Renesas Electronics Corporation, Samsung and Texas Instruments Incorporated.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.

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