Nvidia is set to report earnings on Wednesday, Aug. 26, after the market closes, with the stock trading at $214.72 as of Friday, Aug. 21, down 4.70% from a recent closing peak of $225.30 on Aug. 13 but up 13.0% from a recent trough of $190.01 on July 29. Analysts expect revenue of $92.07 billion, up from $81.62 billion last quarter, and earnings per share of $2.09, up from $1.87, implying a 47% annualized growth rate that may not wow the market given prior growth rates of 67% and 110.58%. Based on projected free cash flow of $257.15 billion over the next twelve months and a 3.90% free cash flow yield, the stock could be worth $272.22 per share, while analyst price targets average around $304. The article suggests shorting out-of-the-money puts, such as the Sept. 25 $200 put with a 2.24% one-month yield, as a way to generate income ahead of potential volatility.
NVIDIA CorporationEarnings preview and analyst price targets suggest potential upside, but growth deceleration and stock volatility create uncertainty.
