- Cantor Fitzgerald’s C.J. Muse expects NVIDIA to deliver a “monster beat” when it reports second-quarter earnings Wednesday, with many hedge funds and long-only investors still underweight the stock.
- Three catalysts to watch on the earnings call: a specific 2027 data-center revenue target, more detail on support for neoclouds, and expanded open-source AI efforts.
- Muse sees attractive risk-reward, with the stock trading near 12 times forward earnings based on his estimate of $16–$17 EPS next year.
- Retail sentiment on Stocktwits is bullish ahead of the print, with most poll participants expecting Nvidia to beat on revenue and earnings.
Nvidia (NVDA) shares fell 1.3% in midday trading Wednesday, but Cantor Fitzgerald analyst C.J. Muse predicts a “monster beat” when the chipmaker reports fiscal second-quarter earnings after the market close. In an interview with CNBC, Muse said investor positioning could support the stock, as many hedge funds and long-only investors remain underweight. “I think we are going to get another monster beat,” he stated.
However, Muse cautioned that the market reaction may depend less on quarterly numbers and more on what CEO Jensen Huang says about Nvidia’s competitive position, balance sheet, and broader AI ecosystem. He flagged three areas that could “move the needle”: a standalone 2027 data-center revenue outlook, Nvidia’s growing support for neocloud providers, and its investments in open-source AI models. Muse expects Huang to address “at least one of them” on the call.
Wall Street expects Nvidia to report about $92 billion in Q2 revenue and adjusted earnings of $2.07 per share, according to Koyfin data. Analysts also project adjusted gross margins near 75% and free cash flow around $47 billion.
Muse argued the valuation still leaves room for upside, projecting $16–$17 in earnings per share next year, which puts the stock at roughly 12 times forward earnings. He acknowledged concerns about circular financing, inference market share, and rising memory costs, but said the risk-reward remains attractive.
Retail sentiment around NVDA is bullish on Stocktwits, with chatter at “high” levels and most poll respondents expecting a post-earnings rally. The stock has gained about 12% year-to-date and over 16% in the past 12 months. For ongoing updates, readers can follow Google News.
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