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Nvidia earnings report. LIVE NEWS ALERT

ended 28. August 2024

Today, all eyes in the markets will be on Nvidia’s Q2 earnings report. As the world’s leading AI firm, Nvidia’s results are seen as an indicator for the shape of the AI industry. One tech analyst, for example, has said “It’s the most important stock in the world right now,” while another commented that this is “the most important tech earnings in years.”

Markets are expecting the chipmaker to post the following:

  • Revenue: $25.71bn from $13.51bn.
  • EPS: $0.57 from $0.25 a year ago.

However, markets are now anticipating Q3 outlook for sales to be in the range of $33-34bn or higher, with the stock currently priced to perfection. Any disappointment on that front could see the stock reverse course.

Feel free to answer one or more of the below questions. Note that this alert will remain live for 2 hours after the earnings report comes out - so drop any insights in now and, if you want, update your quotes when the data drops.

  1. What markets could be hit if the results come in below expectations?
  2. How much more upside to Nvidia is there?
  3. What sectors can benefit, or are at threat, from AI?
  4. Is AI a bubble? Has the market got ahead of itself?

Any other thoughts and insights, send them across.

2 responses from the Newspage community

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Editor
Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
With revenue that could make even the most seasoned investors pause, Nvidia is not just riding the AI wave; it's leading the charge. This formidable growth underscores Nvidia's pivotal role as companies worldwide race to modernise their computing infrastructures. Yet the market’s singular focus on Nvidia’s results suggests that it may be time for the AI frenzy to be doused with a cold shower of reality. Nvidia is currently on a tightrope walk with no safety net, and even a minor wobble could send investors into a tailspin. With each new earnings success, the AI bubble is inflating further, and one prick from unmet expectations could see it burst spectacularly. Yet they won’t be alone in the downfall as any company heavily invested in AI could face a downturn, and the broader market could feel the tremors of a potential stumble. High valuations and investor optimism characterise the current market environment, so in the high-stakes game of AI, one wrong card could topple the whole house
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Editor
Wes Wilkes
CEO at IronMarket Wealth
NVIDIA didn't quite deliver the mike-drop moment some US tech analysts were predicting, but they still managed to outpace earnings and revenue estimates by a staggering $1.3 billion—an amount equal to Uber's entire quarterly revenues. Despite the impressive figures, the stock faced turbulence, initially dropping around 8% before settling down 3% in after-hours trading.
The market's reaction suggests investors may be taking a moment to catch their breath, especially as we head into a traditionally volatile season for US stocks.
However, with AI demand still far outstripping supply, NVIDIA continues its strong advance, even as markets pause to recalibrate ahead of the year-end and the US election.