The upcoming earnings report of NVIDIA Corp. (NASDAQ:NVDA) could be a turning point for the company, a leading analyst says.
What happened: Dan Ivesan analyst at Wedbush effectspredicts that the earnings report, scheduled for August 28, will be a major event for the technology sector.
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Ives stressed that the earnings call will capture the attention of investors globally as they await insights from the CEO Jensen Huang on the future demand for artificial intelligence chips up to 2025.
“Nvidia’s earnings report on August 28 will be a nail-biter on trading floors around the world as investors hear from the Godfather of AI Jensen about the huge demand for AI chips through 2025, which we believe will be another moment to drop the mic on technology,” Ives wrote on X on Sunday.
Nvidia’s earnings call on August 28 will be a nail-biter on trading floors around the world, as investors hear from the Godfather of AI Jensen about soaring demand for AI chips through 2025. We think this will be another mic-drop moment for the tech sector.
— Dan Ives (@DivesTech) August 12, 2024
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Why it’s important: Nvidia has seen a significant drop in market value, down $900 billion since its June peak, despite continued growth in AI spending. Major tech companies such as Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOGL), and Meta Platforms Inc. (NASDAQ:META) has pledged to continue investing in AI infrastructure, which accounts for more than 40% of Nvidia’s revenue.
Furthermore, the mega-cap stocks of the “Magnificent Seven,” which includes Nvidia, are leading the market volatility. Despite a 30% decline from their five-year peak valuations, they remain 50% above their five-year lows. This group, which includes major players in IT, communications services and the electric vehicle industry, continues to exert a significant influence on the market.
See also: Don’t miss the next Nvidia – For just $10 you can invest in the future of AI.
In addition, there are notable figures such as the former chairman Nancy Pelosi (D-Calif.) have shown confidence in Nvidia’s future by buying additional shares. Pelosi recently announced that she bought more Nvidia shares while selling some of her stake in Microsoft.
Finally, early tech investor James Andersen has predicted that Nvidia could reach a market cap of nearly $50 trillion within the next decade, driven by growing demand for AI chips. This bullish outlook has helped Nvidia shares soar 117% year-to-date.
Price action: Nvidia shares closed Friday at $104.75, down 0.21% for the day. In after-hours trading, the stock was up 0.019%. Year to date, Nvidia shares are up an impressive 117.46%, according to data from Benzinga Pro.
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This article Nvidia’s Earnings Are About to ‘Drop the Mic’ as Investors Expect ‘Huge’ Demand for AI, Says CEO Jensen Huang, Tech Bull originally appeared on Benzinga.com
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