The semiconductor company’s stock price hit an all-time high a day before it reported its earnings. This is what is expected.
Nvidia tests the market record with its balance sheet presentation
Wall Street expects a solid presentation of the ifirst quarter revenue of Nvidiabut some analysts are worried about a slowdown in demand for its chips.
After presenting its highly anticipated new chip, BlackwellIn March, Nvidia is set to report its first-quarter earnings this Wednesday before the market opens, while the stock price closed the latest session at a new all-time high. Like other companies in the sector.
Nvidia shares rose 0.6% during Tuesday afternoon and closed at a new high of $953.86. The previous maximum of Nvidia was US$950.02, which reached March 25. Thus, before the key moment of this day, the semiconductor company’s papers cut slightly -0.3%. However, in the last month the paper has gained more than 25% and by more than 90% in the last six.
Nvidia: what to expect
Wall Street set expectations for the company to report first-quarter revenue of $24.5 billion, according to a FactSet survey of analyst estimates. KeyBanc equity research analyst John Vinh said Nvidia is likely to report first-quarter revenue closer to $26 billion and set its second-quarter guidance at around $28.5 billion.
So earnings from semiconductor giant Nvidia are set to provide the latest test for the US stock market rally that has taken indices to all-time highs in recent days.
Nvidia’s influence in broader markets also grew. As the company’s chips are the gold standard in artificial intelligence, Its results are widely considered a barometer for the burgeoning AI industry.whose development has sparked investor enthusiasm and helped fuel the bullish rally in US stocks.
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At the same time, Nvidia’s growing weighting in indexes and exchange-traded funds has given its stock price movements disproportionate influence over broader markets. The stock now has a more than 5% weighting in the S&P 500, while it represents 6.5% of the Nasdaq 100 and 20% of the VanEck Semiconductor ETF.
“If they do well… there will be many actions that will follow in its wake“said Jay Woods, chief global strategist at Freedom Capital Markets. “It is very rare that a single stock can have such a dramatic impact on the broader market. But Nvidia has earned that.”
Nvidia’s results come as the S&P 500, Nasdaq Composite and Dow Jones Industrial Average have hit all-time highs this month after a turbulent April, buoyed by a strong earnings season and renewed hopes that the U.S. economy is headed toward a so-called soft landing.
Strong results from Nvidia could complement well-received reports from other US megacap companies such as Microsoft.
Source: Ambito
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