NVIDIA will move the market tonight in the alleged artificial intelligence bubble test

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Good morning. After the bell today, Nafidia It will be reported. And in the world of technology and beyond, there is one clear thing: NVIDIA profits are not only rotating Nafidia Next. The 4 trillion dollar quarterly financial statements have become a test of artificial intelligence mutation – and therefore, for the entire stock market. 8 % of the weighted S&P 500 index, and with an unparalleled grip on chips generated by artificial intelligence, Wall Street now treats NVIDIA results similar to the macroeconomic index more than one report on one company. Declaration of profits has become a cultural phenomenon Complete with watch parties.

In the three months that the last time the company gave investors a quarterly update, in May, NVIDIA shares rose by 35 %. Wall Street analysts are looking for Nafidia Q2 Revenue for an increase of 53 % year to $ 46 billion, at the end of NVIDIA, with $ 1.01 arrow profits. Data center sales, which are the essence of NVIDIA’s business, are expected to come approximately $ 40 billion.

The uncertainty about the Chinese NVIDIA works is still looming on the horizon. After the previously banned NVIDIA from selling to China, NVIDIA and AMD were concluded earlier this month a deal with the Trump administration to grant Export licenses in exchange for revenue sharing by 15 % Arrange on China chips sales. “I think they will not count, and do not expect China’s revenues, as there is a lot of uncertainty,” Carl Frond, founder and main analyst in Caprien I expects research.

behind Jius, NVIDIA faces another challenge: the surrounding tension of what is already the most watched profit of this season has increased by recent tensions about what some concern is A dangerous financial bubble In traumatic arrows artificial intelligence. This would strike at the heart of NVIDIA’s business and evaluation of the strategy-the company’s trading at more than 40 times its expected profits-which depend on the continuous demand for strong graphics processing units. NVIDIA growth is largely concentrated in a handful of cloud giants, including Deadand Amazonand Google and MicrosoftIn addition to the start -up companies of very funded artificial intelligence, such as Openai. If these companies slow down their spending, NVIDIA suddenly loses their largest buyer. As NVIDIA shares have gained a lot in recent months, Miss, or cautious guidelines linked to China’s restrictions, can send NVIDIA shares – or for this wider market issue.

Let the clock parties start.Sharon Goldman

Communication CEO daily via Diane Brady in [email protected]

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