Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided.

The proven Zacks model conclusively shows that a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has significantly high chances of beating estimates if it also has a positive Earnings ESP. Moreover, autonomous vehicle development deals and the growing uptake of AI-based smart cockpit infotainment solutions are likely to drive automotive revenues in the to-be-reported quarter. The company’s Turing GPU and its real-time ray tracing technology are witnessing a massive adoption, which is a positive. However, NVIDIA’s confidence in its strategies and growth opportunities in ray-traced gaming, rendering, high-performance computing, AI and self-driving cars, is something to look forward to. Further, sluggishness in the datacenter market also makes us apprehensive about the upcoming quarterly results. Moreover, deteriorating macro-economic conditions, particularly in China, are inducing soft consumer demand for the GPUs. Management expects revenues to decrease in the quarter under review as channel inventory is likely to be cleared by the end of the period to be reported. Notably, following tepid GPU demand from crypto miners, the company’s decision to suspend mid-range Pascal GPU shipments in order to normalize channel inventory levels is hurting its gaming revenues. A sharp decline in the Gaming segment is a major overhang on the company. NVIDIA, which has impressed investors with a stellar performance in the last couple of years, has been witnessing a downward trend since last October. Let’s see how things are shaping up for the upcoming announcement.

NVIDIA Corporation price-eps-surprise | NVIDIA Corporation Quote NVIDIA Corporation Price and EPS Surprise

Nvda earnings q1