Nvidia Earnings Preview: What Shareholders Anticipate and Market Impact

One of the most important companies in the stock market is gonna be reporting their earnings this week, Wednesday after the closing bell. And I’m sure many of you can already guess that it’s Nvidia. This video is intended to be an earnings preview around what shareholders might be anticipating ahead of the release. But first I wanna talk about why Nvidia is so important. Nvidia accounts for more than 6% of the S P 500, which means it has a lot of influence over how other stocks perform. So depending on how the results come in on Wednesday, it can cause a lot of volatility in the market. Investors continue to expect that demand for Nvidia semiconductor chips is robust and plentiful. And that’s because a lot of the tech companies, like the hyperscalers like Amazon, meta, and many others, they are spending like crazy to build out their AI infrastructure and all the technologies that are required to power generative AI technologies, all of which require Nvidia’s latest, uh, semiconductor chips. But there have been some rumors around delays on Nvidia’s Blackwell platform, which is a platform designed to process AI workloads. So investors want an update on that. And Wall Street is saying this update is arguably going to be more important than the guidance that Nvidia provides for next quarter. An interesting thing that I like to key on when I look at stocks is their valuation. And when you look at Nvidia, it’s currently at a Three trillion dollar market cap, which ran up to such a huge amount last year. In the beginning of 2023 was just at 500 million. So this company has grown significantly in such a short period of time. But an interesting thing is even though it has grown, its valuation is actually pretty reasonable right now. Nvidia is trading at around um, 38 times earnings, which is below its historical average. So this could be a positive for investors who might be interested in buying into the stock. Maybe if there is a drop in the stock price post earnings, it could be a chance to pick up some more shares. Um, but that, that’s some information about, um, Nvidia going into earnings and some of the investor sentiment surrounding it.