Posted 2/22/2024, 1:57:00 AM
Nvidia faces risks of disappointing investors even with strong earnings beat
- Investor expectations for Nvidia's earnings are very high
- JPMorgan said the stock could react negatively if earnings drastically exceed expectations
- This is because a major beat could signal improving supply when demand is still high, leading to potential oversupply
- Nvidia has faced supply constraints, with customers like Tesla wanting more GPUs than it can provide
- With the stock up a lot last year, risks are skewed to the downside around earnings, so Nvidia is in a "lose-lose" situation for the stock price