Speaking of Nvidia, from SA email:
It's that time of the quarter again! Nvidia (NVDA) will report its latest results after the closing bell, marking the last "Magnificent 7" member to reveal its numbers. The company's figures are watched far and wide - not only because they can impact hundreds of ETFs - but also because Nvidia is the clear leader of the AI revolution that has bolstered the overall market.
By the numbers: Only a month ago, Nvidia became the first company in the world to reach the $4T valuation milestone amid expectations that hyperscalers will continue to build out their infrastructure, given consistent raises in capex projections. While there have been some concerns about how long those mega investments will keep up, Nvidia has continued to broaden its product pipeline (Blackwell Ultra and Jetson Thor), as well as expand into new markets (China, UAE and Saudi Arabia).
Can the most valuable company in the world reach another record high? Quite possibly. Options trading already indicates that big price swings could be in store, with a gain or loss of as much as 6% for Nvidia in after-hours trading. Expectations are key here, so look beyond the consistent double-beat streak to guidance, as well as what analysts feel about the latest growth rates and projections.
What else to watch: Pay close attention to China, which will likely be part of the post-earnings call with CEO Jensen Huang. An unconventional deal was recently cut for Nvidia (NVDA) to sell to China in exchange for paying the U.S. government 15% of those revenues, but the Chinese government later warned local companies of potential "backdoor security risks." Nvidia then reportedly halted production of those H20 chips, though Huang told reporters last week that "hopefully the response we've given to the Chinese government will be sufficient." |
