Nvidia’s Anticipated Earnings Report
Nvidia Corp NVDA is set to release its much-anticipated earnings report for the fiscal second quarter of 2025 tomorrow. Analysts are largely bullish on NVDA stock, but questions have arisen, setting the stage for a market tug-of-war with potential profit opportunities for nimble traders.
Wall Street’s Projections
Analysts expect Nvidia to create earnings per share (EPS) of 64 cents, significantly higher than the 25 cents posted in the year-ago quarter. Revenue estimates stand at $28.68 billion, well above the previous year’s $13.51 billion.
The Focus on Artificial Intelligence
Nvidia’s AI capabilities will be under scrutiny as the company’s stock has surged by over 2,900% in the last five years, propelled by advancements in graphics processors essential for various AI applications.
Mixed Market Sentiment
While some experts like Steve Grasso have exited Nvidia positions ahead of the report, others, such as Goldman Sachs, foresee massive investments in AI but question their efficiency. This conflicting sentiment could result in choppy NVDA stock performance.
Direxion’s NVDA ETFs
Direxion’s Nvidia-focused ETFs offer opportunities for both bulls and bears. The Direxion Daily NVDA Bull 2X Shares (NVDU) provide leveraged exposure for optimistic investors, while the Direxion Daily NVDA Bear 1X Shares (NVDD) allow shorting of Nvidia stock.
NVDU Performance
NVDU, mirroring NVDA stock but amplified, has shown a 298% gain this year, outpacing Nvidia’s 162.5% growth. The fund’s performance is closely tied to key levels, hinting at potential price movements.
NVDD Performance
On the contrary, NVDD has dropped 68% this year, failing to hold support levels as NVDA stock rose. The fund’s bearish stance may attract more attention with rising trading volumes, especially if NVDA’s earnings disappoint.
