"Nvidia's earnings aren't just about Nvidia anymore. The $4 trillion chipmaker's quarterly financials have become a litmus test for the AI boom-and, by extension, for the whole stock market. Constituting 8% of the market cap-weighted in S&P 500 Index and with an unrivaled grip on the chips that power generative AI, Wall Street now treats Nvidia's results more like a macroeconomic indicator than as a report card on a single company. The earnings announcement has even become a cultural phenomenon complete with watch parties."
"Investors are bracing for the company's latest quarterly results due after Wednesday's market close, with trading in Nvidia options implying expectations that the stock will move 6%, up or down-equal to a $260 billion-dollar change in Nvidia's market value. In the three months since the company last gave investors a quarterly update, back in May, Nvidia's stock has surged 35%."
"Wall Street analysts are looking for Nvidia's Q2 revenue to surge 53% year-over-year to $46 billion, at the high end of Nvidia's guidance, with earnings per share of $1.01. Data center sales, the crux of Nvidia's business, are expected to come in close to $40 billion. But with Nvidia's shares having gained so much in recent months, a miss on Wednesday, or cautious guidance tied to China restrictions, could send the stock plummeting."
Nvidia's quarterly results function as a litmus test for the generative AI boom and a proxy for broader market sentiment. The company accounts for about 8% of the S&P 500 market-cap weighting and dominates the chips that power generative AI. Options trading implies an expected roughly 6% stock move for the upcoming earnings, equating to a $260 billion swing in market value. Analysts anticipate Q2 revenue up about 53% year‑over‑year to $46 billion and roughly $40 billion in data center sales. Recent 35% stock gains since May heighten downside risk from any revenue miss or cautious China-related guidance. Geopolitical tensions and export restrictions on certain chips add further uncertainty to future results.
Read at Fortune
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