Nvidia stock upcoming earnings report on August 28 has investors on edge, eager to see if the company’s meteoric rise in the AI chip market can continue. With Nvidia’s stock up 170% in the past year, it’s no wonder the anticipation is high.
While Nvidia has dominated the AI chip landscape, recent reports of delays in the shipment of its new Blackwell AI chip have injected some caution into the market. Investors will be looking closely at how Nvidia addresses these concerns during the earnings call.
Key Indicators to Watch
For Nvidia to maintain its upward trajectory, two critical factors will be under scrutiny.
- First, the company needs to reassure investors that the Blackwell shipment delays are not indicative of deeper issues.
- Second, Nvidia must demonstrate strong quarter-over-quarter sales growth in its data centre business, which has been a major driver of its recent success.
There is good reason for the bullishness based on a host of recent signals from earnings reports:
- Taiwan Semiconductor (TSM) just cited strong AI demand when it reported.
- AMD (AMD) recently lifted its sales for data centre chips for the third time in a year.
- Super Micro Computer (SMCI) cited strong demand for its liquid cooling solutions.
- Nvidia chip customer Meta (META) just raised its capital expenditures guidance for 2024 and 2025 by billions.
Potential Market Impact
If Nvidia delivers on these points, it could set the stage for continued growth, potentially pushing the company’s market cap toward the $6 trillion mark by year-end. However, any signs of weakness could trigger a reassessment of Nvidia’s lofty valuation.
Investors are keenly watching how Nvidia navigates these challenges, with the upcoming earnings report likely to be a significant indicator of the company’s future performance.
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