Nvidia Earnings Preview: Selloff in the Cards as Parabolic Rally Put to Test
Nvidia's (NASDAQ:NVDA) earnings report on Wednesday afternoon is set to pose a critical test for the AI-led market rally.
Some analysts are even going as far as to suggest that the print could be the most important one for the entire stock market in years.
Given Nvidia's stature and its leading role in the artificial intelligence hype train that has been propelling recent gains in U.S. stocks, the company's upcoming results have the potential to significantly impact market sentiment.
The Santa Clara, California-based tech giant briefly overtook Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) to become the third most valuable company trading on the U.S. stock exchange last week, trailing only Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL).
With excitement around AI innovation reaching a fever pitch, investors are closely watching to see if Nvidia's results will validate the optimism surrounding the tech sector.
Should the chipmaker fail to meet expectations, it could have swift repercussions on investor sentiment, potentially dampening enthusiasm for AI-related investments.
With so much riding on the outcome, all eyes will be on Nvidia as the market awaits the verdict on the company's performance and its implications for the future trajectory of AI-driven innovation.
Nvidia is scheduled to release its highly anticipated fiscal Q4 update after the U.S. market close on Wednesday at 4:20 PM ET, and it is expected to shatter its sales record once again amid robust demand for its AI chips.
A call with CEO Jensen Huang and finance chief Colette Kress is set for 5:00 PM ET.
An InvestingPro survey of analyst earnings revisions points to mounting optimism ahead of the print. Profit estimates have been revised upward 33 times in
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