Nvidia Earnings Expected to Beat Predictions, but Followed by Sell-Off

Nvidia's upcoming earnings are set to be closely watched by traders and investors. According to recent trends, it is likely that Nvidia will beat its earnings and EPS predictions. This comes as a result of the expansion of capex from hyperscalers and the company's partnership with several financial institutions.

The release of earnings from other hyperscalers and competitors has already signaled strong continued growth, including a memory chip shortage and price hike. Traders may be unhappy with Nvidia's growth, especially considering its large market capitalization compared to smaller competitors like AMD and Intel.

Historically, Nvidia's earnings have been followed by a sell-off in the stock price, often in the weeks after the announcement. This is partly due to institutions' strategies of dumping shares after earnings and buying back at lower prices later on.