U.S. markets are awaiting the latest financial results from microchip giant Nvidia (NVDA) on Aug. 28 in what is seen as a major test for technology stocks and the trade in artificial intelligence (A.I.).
Markets are anticipating that Nvidia will once again post strong top and bottom-line growth for this year’s second quarter as global demand for its microchips and processors that power A.I. applications remains strong.
Wall Street analysts have a consensus forecast for Q2 earnings per share (EPS) of $0.65 U.S. and revenue of $28.72 billion U.S.
The forecast represents 140% year-over-year earnings growth and 113% annualized sales growth at the company.
While expectations are high, Nvidia has consistently managed to beat analysts’ forecasts. The company has topped Wall Street estimates for eight consecutive quarters.
The strong financial results have propelled Nvidia’s stock nearly 170% higher so far this year, making it the best performing stock in the benchmark S&P 500 index.
Nvidia is riding high on its leading position as a designer of A.I. accelerator microchips and processors. Its sales are expected to get a boost from the release of its new “Blackwell” chips.
Many analysts now see Nvidia as a bellwether for the A.I. trade and technology stocks in general.
A miss by Nvidia on its upcoming financial results could send the entire market lower, warn some on Wall Street.
Options traders are betting on an 11% move in Nvidia’s stock either higher or lower immediately after the company issues its Q2 results on Aug. 28.
Several analysts have raised their price targets on Nvidia’s stock heading into the Q2 print, as they see the company’s sales and profits continuing to grow.
Following a 10-for-1 stock split in June of this year, Nvidia’s stock currently trades at $129.37 U.S. per share, up 176% over the past 12 months and up nearly 3,000% in the last five years.
