NVIDIA's upcoming earnings may cause an 8.7% swing, with high expectations for growth and impact.

From Nasdaq: 2024-05-21 11:35:00

NVIDIA’s upcoming earnings release is expected to cause a significant 8.7% swing in the company’s shares, potentially shifting the market cap by $200 billion. This anticipated movement is lower than past quarters but is still significant due to NVIDIA’s role in the AI industry, with shares up 97% this year.

NVIDIA CEO highlighted the importance of the partnership with Dell Technologies to spread AI capabilities across industries. Dell’s infrastructure complements NVIDIA’s technology, allowing businesses to establish their own “AI factories.” NVIDIA aims to integrate its technology into various sectors, diversifying its presence in the AI market.

Ahead of NVIDIA’s earnings, BofA strategists predict the company to drive 9% of the S&P 500 earnings growth in the next 12 months. ETFs with strong NVIDIA allocations like SHOC, SMH, DARP, LRNZ, and SOXQ present potential opportunities based on NVIDIA’s performance. Single-stock ETFs that aim to double NVIDIA’s daily return will also be closely watched for volatility.

Investors are closely monitoring NVIDIA’s quarterly performance, with expected earnings and revenue growth of 402.75% and 237.47%, respectively. Any downturn in NVIDIA’s shares post-earnings could impact broader confidence in the AI trade. NVIDIA’s performance is crucial for the overall sentiment towards AI-related investments.



Read more at Nasdaq: What You Need to Know About NVIDIA ETFs Ahead of Earnings