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.
