Jim Cramer tweeted that he 'senses a monumental day' just before Nvidia reports fiscal Q2 earnings after Wednesday's close. The call lands as the stock finally snapped a seven-session losing streak, closing Tuesday at $213.05, up 2.19%. Pre-market trading Wednesday had NVDA near $213.77, up another 0.34%.
Wall Street's Expectations
Consensus calls for roughly $92 billion in revenue and $2.09 in adjusted earnings per share. Data center sales alone are expected to land near $85 billion. With the company's market value sitting around $5.16 trillion, the stakes are obvious: this isn't just a quarterly print, it's a referendum on the AI trade that Nvidia has come to define.
Cramer's Call
Cramer didn't hold back in the hours before the report. He called Nvidia all-important to the AI trade, framing the results as a verdict on the whole ecosystem. But he also acknowledged the stock's rough stretch, writing, 'the stock limped into the report' and 'seven straight down days??? Certainly NOT coming in hot.'
He also dismissed the competition chatter that's been following Nvidia around. 'Every day I read about some chip that is superior to Nvidia,' Cramer tweeted. 'And every year I see no real competitors.'
The Earnings Trap
Options and money-flow data, though, are pointing to a potential earnings trap. The setup, as traders read it, means even a solid beat might fail to lift the stock if the company doesn't offer stronger forward guidance. In other words, the market's already pricing in a blowout quarter; the real test is what comes next.
That's why the reaction after the close could be choppy, no matter what the headline numbers show. A miss on guidance, or a cautious tone about the coming quarters, could erase Tuesday's bounce in a hurry.
Analysts Are All In
For now, the analyst community remains firmly behind the chipmaker. All 29 analysts tracked by TipRanks rate NVDA a Strong Buy, with an average 12-month price target of $304.67. That's roughly 43% above Tuesday's close. But the crowd can be fickle, and the 'inverse Cramer' meme — a strategy that bets against the Mad Money host's calls — has had mixed backtests, though its believers love to cite days like this one.
After the report drops, the first question will be about guidance, not the beat. Whether Cramer's monumental day actually materializes depends on how the market reads the forward outlook. The answer comes after the close.
