Quick Brief – Nvidia earnings key for reviving stalled rebound and broader risk-on rally
Nvidia earnings look set to inject some life into subdued markets
Another quarter of triple-digit earnings growth is anticipated
But will this be enough to revive the AI rally?
Nvidia is the last of the Magnificent 7 to report its Q2 results, but definitely not the least. The chip giant is seen as a bellwether for other AI stocks as its dominant position in the industry means that any changes in demand will be reflected in Nvidia’s revenue.
The Company is expected to report annual growth in earnings per share of 137.0%, while revenue is projected to more than double to $28.48 billion in the second quarter ending July 30.
An earnings beat seems more likely than a miss given the strong AI spending announced by other tech companies in their latest results.
But much of this is already priced in, as well as the Fed’s dovish pivot. So, is there scope for much of a rally? This is why its guidance for the rest of the year might matter more.
In the case that the earnings don’t impress, however, it’s not just Nvidia’s stock that’s likely to take a big hit, but risk sentiment in general.
![](https://www.xm.com/wp-content/uploads/2024/08/NvidiaDaily-1.png)
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.