NVIDIA Corp.’s (NASDAQ:NVDA) upcoming earnings report could be a pivotal moment for the company, according to a leading analyst.
What happened: Wedbush Securities analyst Dan Ives predicts earnings reports scheduled for Aug. 28 will be a key event for the tech industry.
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Ives stressed that the company will attract the attention of investors around the world who are eager to hear CEO Jensen Huang’s views on future demand for artificial intelligence chips through 2025.
“NVIDIA’s earnings call on August 28 will likely silence the Street and trading desks around the world as investors hear from the godfather of AI, Jensen, about forecasting a surge in demand for AI chips through 2025. This will be another mic-drop moment for the tech industry,” Ives wrote on X on Sunday.
At Nvidia’s earnings call on August 28th, there will be a hush on the Street and trading desks around the world as investors will hear from the godfather of AI, Mr. Jensen, about the exponential increase in demand for AI chips through 2025. We believe this will be another mic drop moment for the tech industry 🔥
— Dan Ives (@DivesTech) August 12, 2024
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Why it matters: Despite the continued surge in AI spending, Nvidia’s market cap is down by $900 billion from its peak in June, a steep decline. Large tech companies such as Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOGL) and Meta Platforms Inc. (NASDAQ:META) have pledged continued investment in AI infrastructure, which accounts for more than 40% of Nvidia’s revenue.
Moreover, the “Magnificent Seven” large-cap stocks, which include Nvidia, have been at the forefront of market volatility. Despite falling 30% from its five-year high, it remains 50% higher than its five-year bottom. This group, which includes major companies in the IT, communications services, and electric vehicle industries, continues to wield significant market influence.
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See also: Don’t miss the next Nvidia – invest in the future of AI for just $10.
Additionally, prominent figures like former House Speaker Nancy Pelosi (D-Calif.) have also shown confidence in Nvidia’s future by buying additional stock, recently revealing that she is selling some of her Microsoft stock while also buying more Nvidia stock.
Finally, early technology investor James Anderson predicts that Nvidia’s market cap could reach nearly $50 trillion within the next decade due to growing demand for AI chips. This bullish outlook has caused Nvidia’s shares to soar 117% since the start of the year.
Price Action: NVIDIA shares closed at $104.75 on Friday, down 0.21% for the day. In after-hours trading, shares were up 0.019%. Year-to-date, NVIDIA shares have risen an astounding 117.46%, according to data from Benzinga Pro.
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The article NVIDIA earnings set for ‘mic drop’ moment as investors expect CEO Jensen Huang’s ‘massive’ AI demand forecast, Tech Bull says originally appeared on Benzinga.com.
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