BBVA strategists suggest a strong Nvidia earnings report could catalyse a US equities rally, with approximately $7 trillion currently held in cash funds by investors. Nvidia's performance is seen as a bellwether for the tech sector and AI's economic potential, influencing related stocks in semiconductors, cloud computing and software. The market anticipates potential volatility, with options trading indicating a cautious stance as investors hedge positions or speculate on outcomes.
Analysts expect Nvidia to report substantial revenue growth, with Wall Street anticipating $38 billion, a 72% year-over-year increase. Earnings per share are projected to rise 62% to $0.84. Nvidia's Blackwell architecture is also a key factor for future growth. A strong earnings report could fuel optimism about AI's economic potential, while a disappointing result may trigger a market correction, given the stock's significant gains over the past year.
Nvidia's Q1 2023 earnings marked the beginning of the AI frenzy, adding nearly $300 billion in market cap to AI stocks in a single day. The implied one-day earnings move is currently at 9%, reflecting the importance of Nvidia's earnings in the current market landscape. The company's performance significantly impacts the tech sector and broader market sentiment.
Subscribe for Weekly Updates
Stay ahead with our weekly AI and tech briefings, delivered every Tuesday.
