AI chip giant Nvidiawhich has one market cap over $3 trillion and is currently second behind Apple“needs to deliver outstanding results” in Wednesday's upcoming earnings call “to justify its lofty $3 trillion valuation,” Lukman Otunuga, senior market analyst at the brokerage FXTMsaid The entrepreneur over email.
The long-awaited earnings call will be a “decisive” moment for the markets; Nvidia stock price it could swing 10.4% either up or down after the announcement, Otunuga said. That means Nvidia's market cap could move by about $300 billion after the call, a bigger move than either of the market caps of Salesforce, McDonald'sAND Walt Disney.
“A strong earnings report could send markets higher, while any sign of weakness could cause a noticeable pullback, making Nvidia's performance a potential market driver this week,” Otunuga said.
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Nvidia is “the most important stock on planet Earth,” Goldman Sachs trading office said once.
Nvidia EXPECTED to reach $28.7 billion in revenue for the second quarter of fiscal 2025, which ended July 30 — a 112.6% increase from the $13.5 billion reported last year. Analysts also predict this Nvidia will post earnings per share of $0.65 compared to $0.27 last year.
Nvidia CEO Jensen Huang during a keynote speech in March 2024. Photo: Justin Sullivan/Getty Images
Otunuga says Nvidia faces challenges such as competition from AMD AND Intel AND recent shipment delays on one of its new AI chips.
Nvidia has increased over 1000% since October 2022, but this growth has not been linear. after reaching the top of the market cap charts in June and becoming the most valuable company in the world, Nvidia fell in value and lost about 900 billion dollars in market value over the next seven weeks.
The stock has since recovered and added hundreds of billions of dollars in the market value, but its volatility remains a concern for Wall Street.
Nvidia's top customers also include other members of the Magnificent Seven, a group of high-performance technology companies including Meta, Amazon and Google that rely on Nvidia for AI chips. This means that Nvidia's performance can influence its peers.
Nvidia reports EARNINGS IN Wednesday after the market closes at 2 pm PT. The company's shares were increased over 165% year to date at the time of writing.
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