From Morningstar: 2024-08-23 10:10:00

Investors are eagerly anticipating Nvidia’s second-quarter earnings report on August 28, with concerns of a potential market impact if results fall short. The company’s semiconductor chips play a crucial role in AI technology, consistently exceeding expectations and sending stock prices soaring. Forecasters are optimistic about continued momentum and revenue growth.

Nvidia’s stock has seen significant increases, up 157% this year and 194% over the past 12 months. Shares recently rebounded after a brief decline in early August due to economic concerns. Analysts project revenue exceeding guidance, citing continued AI infrastructure spending by major tech firms like Microsoft and Amazon. The stock is currently valued at around $128 per share.

Analysts remain positive on Nvidia, predicting another strong year of revenue and earnings growth. Despite recent market volatility, experts see any dips as buying opportunities. However, questions arise about the sustainability of the AI investment cycle and potential market ramifications if Nvidia’s performance disappoints. Index fund investors are warned of concentrated risks if the AI trade falters.



Read more at Morningstar: What if Nvidia Misses Earnings?