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Can Nvidia earnings reignite the AI flame?
That’s the question Matt Britzman, senior equity analyst at Hargreaves Lansdown, is asking.
“For the first time in several quarters, Nvidia enters earnings with sentiment under pressure. Shares have softened on concerns of an AI bubble and the reality that China sales are unlikely to rebound soon.”
However, Britzman says the overarching picture for Nvidia “remains strong” and he believes third-quarter revenue will come in near the top end of guidance, “at around $55 billion – and scope for an upside surprise.”
He believes market participants will be watching fourth-quarter guidance and any color for the year ahead.
“CEO Jensen Huang recently flagged $500 billion worth of orders on the books, and investors will be keen for clarity on timing, which could imply material upside to current forecasts. With plenty of nervousness in the air, strong results from Nvidia could be the perfect catalyst to reignite the AI flame,” says Britzman.
– Karee Venema
Nvidia stock opens lower to start earnings week
Nvidia stock opened lower Monday morning, down 0.9% at last check. The chip stock is down more than 7% for the month to date, but has still gained nearly 42% since the start of the year.
This comes as the broader equities market trades cautiously higher at the start of the week, with the blue-chip Dow Jones Industrial Average up 0.04%, the broader S&P 500 0.1% higher and the tech-heavy Nasdaq Composite enjoying a 0.2% lead.
– Karee Venema
Karee Venema
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021, and oversees a wide range of investing coverage, including content focused on equities, fixed income, mutual funds, ETFs, macroeconomics and more.