Why Nvidia Stock Is Losing Ground Premarket Ahead Of Q1 Results

Shares of Nvidia Corp. NVDA were pulling back in premarket trading Wednesday ahead of the company’s quarterly report due after the market closes.

The stock fell 1.57% to $306.88, according to data from Benzinga Pro.

The company is expected to report year-over-year earnings per share decline of over 32% to $0.92. First-quarter revenue may have fallen about 21% to $6.52 billion.

Raymond James analyst Srini Pajjuri said in a preview note that he expects the company to report slightly better results and offer better than consensus outlook for the fiscal year 2024, second quarter. The analyst premised his optimism on booming generative AI demand and the H100 product ramp. These positives will likely offset slower Cloud capex spending, he said.

Investors may also be keyed into the company’s earnings call to gauge the company’s potential opportunity in AI.

The weakness seen in the premarket could be due to pre-earnings jitters and the market-wide sour mood due to the looming debt default if the government is unable to negotiate a deal with House Republicans.

Nvidia stock is the best-performing S&P 500 stock this year, having gained over 100%.

See Also: How To Buy Nvidia (NVDA) Stock