• 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.