A little over two weeks after Nvidia issued a negative earnings pre-announcement, analysts expectations continue to be very low for the gaming-card company when it reports after the bell Thursday.
Nvidia surprised investors and analysts on Jan. 28 citing macro deterioration in China, data center issues and weaker sales than expected.
The stock has lost almost half its value in the last four months alone. However, since the pre-announcement Nvidia is up 10 percent at $153.91 heading into Thursday trading.
Despite the recent rise in shares, many analysts still remain conflicted on the stock.
Bernstein analyst Stacy Rasgon recently downgraded and lowered his price target noting, "Since the pre-announcement 2 weeks ago we have struggled with what to do with the stock, and have used the time to think through more broadly what the near to mid-term trajectory might bring. Coming out, we believe the shares are likely to remain hamstrung."
"There are more questions than answers around this quarter, given the nearly $1 billion shortfall vs. January quarter consensus of 3 months ago," Morgan Stanley analyst Joseph Moore said. He went on to say, "We see the stock as a core holding but it's hard to argue for a large overweight position until visibility improves."
Kirk Materne at Evercore ISI, pointed out in his analyst preview note that, "Investor sentiment is clearly very negative with management losing some credibility on the magnitude of the recent reset. But we think this will eventually pass. We believe mgmt. fundamentally misunderstood the negative adverse impact of Crypto." They also think investors may eventually be rewarded for sticking with the stock.
Other analysts are taking more of a wait and see approach. "We think NVDA stock is range bound for the print and we wait for clarity on 2H." RBC's Mark Mahaney said.
"Overall tough fundamental set-up, but we think investor sentiment is even weaker, and some reassurance on sales recovery could be a contrarian positive for the stock," said Vivek Arya at Bank of America. He did note that this is an "enhanced opportunity" to buy Nvidia shares.
Here's what else analysts expect: