Why Are Nvidia Earnings So Important? They Could Be a ‘Market Mover,’ Says Expert
Nvidia is currently the second largest company in the world by market cap, after Apple.
Key Takeaways
- Nvidia has grown over 1,000% since October 2022.
- The AI chipmaker’s Q2 FY25 earnings call on Wednesday is a “crucial” moment for the markets, stated FXTM senior market analyst Lukman Otunuga.
- Nvidia reports earnings on Wednesday at 2 p.m. PT.
AI chip giant Nvidia, which has a and is currently second only to Apple, “needs to deliver exceptional results” on its upcoming Wednesday earnings call “to justify its towering $3 trillion valuation,” Lukman Otunuga, senior market analyst at trading broker , told Â鶹Éç over email.
The highly-anticipated earnings call will be a “crucial” moment for the markets; Nvidia’s stock price could swing 10.4% either up or down following the announcement, Otunuga said. That means that Nvidia’s market cap could move by about $300 billion after the call, a move larger than each of the market caps of , McDonald’s, and Walt Disney.
“A strong earnings report could drive markets to new highs, while any sign of weakness might trigger a notable pullback, making Nvidia’s performance a potential market mover this week,” Otunuga stated.
Related: Nvidia and the Magnificent Seven Have ‘Immense Returns,’ but Strategists Say There Are Risks
Nvidia is “the most important stock on planet Earth,” the Goldman Sachs trading desk .
Nvidia to hit $28.7 billion in revenue for the second quarter of fiscal year 2025, which ended on July 30 — a 112.6% increase from the $13.5 billion reported last year. Analysts also predict that Nvidia will post earnings per share of $0.65 compared to $0.27 last year.
Otunuga says that Nvidia faces challenges like competition from AMD and Intel and to one of its new AI chips.
Nvidia has since October 2022, but that growth hasn’t been linear. After in June and becoming the most valuable company in the world, Nvidia plunged in value and in market cap over the next seven weeks.
The stock has since rebounded and in market value, but its volatility .
Nvidia’s top clients also include other members of the “Magnificent Seven,” a group of top-performing tech companies including Meta, Amazon, and Google that rely on Nvidia for AI chips. This means Nvidia’s performance could affect its peers.
Nvidia reports on at 2 p.m. PT. The company’s stock was year-to-date at the time of writing.
Related: Here’s How Much Investing $10,000 in Nvidia When It Went Public Would Be Worth Now
Key Takeaways
- Nvidia has grown over 1,000% since October 2022.
- The AI chipmaker’s Q2 FY25 earnings call on Wednesday is a “crucial” moment for the markets, stated FXTM senior market analyst Lukman Otunuga.
- Nvidia reports earnings on Wednesday at 2 p.m. PT.
AI chip giant Nvidia, which has a and is currently second only to Apple, “needs to deliver exceptional results” on its upcoming Wednesday earnings call “to justify its towering $3 trillion valuation,” Lukman Otunuga, senior market analyst at trading broker , told Â鶹Éç over email.
The highly-anticipated earnings call will be a “crucial” moment for the markets; Nvidia’s stock price could swing 10.4% either up or down following the announcement, Otunuga said. That means that Nvidia’s market cap could move by about $300 billion after the call, a move larger than each of the market caps of , McDonald’s, and Walt Disney.
“A strong earnings report could drive markets to new highs, while any sign of weakness might trigger a notable pullback, making Nvidia’s performance a potential market mover this week,” Otunuga stated.
