From Investing.com: 2024-11-17 09:00:46

Nvidia Corp’s upcoming results will impact the US stock market, especially tech and AI sectors, following an election-driven rally pause. Nvidia’s 800% share surge in two years has made it the world’s most valuable semiconductor company. Its fiscal Q3 earnings are expected to be strong, with net income forecasted at $18.4 billion and revenue at $33 billion.

Investors are eagerly awaiting Nvidia’s financial performance, which has been exceptional due to its strong AI presence. The company’s results will influence the market’s sentiment towards tech stocks and equities. With the S&P 500 pulling back from record highs post-election, Nvidia’s performance could provide direction for investors.

Nvidia’s dominance in AI has propelled its stock price and financial success. The company’s Q3 net income is projected to be $18.4 billion, with revenue soaring over 80% to $33 billion. However, Nvidia has been facing challenges in surpassing analysts’ expectations, with earnings only beating estimates by 6% in the last reported quarter.

The broader market’s valuation could rely on Nvidia’s results, with the S&P 500’s forward P/E ratio at over 22 times and near a three-year high. Nvidia, along with other tech giants like Apple and Microsoft, have been driving earnings growth, with the so-called Magnificent 7 companies expected to have increased earnings by 30% in Q3 compared to 4.3% for the rest of the index.

Federal Reserve Chair Jerome Powell’s recent comments on maintaining interest rates have impacted stock markets. Powell’s statement indicates that the Fed won’t rush to lower rates, potentially creating headwinds for the market. Investors will also monitor Trump’s transition plans for key cabinet roles, with some initial appointees causing weakness in sectors like pharmaceuticals and defense.



Read more at Investing.com: Nvidia results in focus as stock market’s election boost stalls By Reuters