From Nasdaq:

1. Chipmaker Nvidia’s earnings report next week could prove to be a major test for the artificial intelligence industry that has helped boost U.S. stocks. Nvidia’s stock has surged more than 46% since Jan. 1, raising excitement over the business potential of AI.

2. Nvidia’s share gains of over 240% have accounted for more than a quarter of the S&P 500’s growth this year. It is now the third most valuable company on Wall Street. Shares of Nvidia-driven companies such as Super Micro Computer Inc and Arm Holdings have also surged this year.

3. Traders are bracing for big moves in Nvidia’s shares following its earnings report. Options are pricing a potential 11% swing in either direction, which is the largest expected move in three years.

4. If Nvidia’s earnings exceed expectations, this could fuel optimism for AI and extend a market rally. However, investors may use a less-than-stellar report as an opportunity to take profits.

5. Wall Street expects earnings of $4.56 a share and a rise in revenue to $20.378 billion from $6.05 billion a year ago. Nvidia has received attention from customers such as Amazon.com and Microsoft due to their cloud businesses which rely on the company’s chips.



Read more: Wall St Week Ahead-High-flying Nvidia’s earnings could test US stock market’s AI dreams