Key Takeaways
Nvidia is set to report earnings after the close on Wednesday, and investors are watching to see what the company's results mean about artificial intelligence (AI) demand. Quincy Krosby, chief global strategist at LPL Financial, said Nvidia's results could be seen as a “signal” for the AI spending outlook. Strong growth indicates robust demand for AI infrastructure, which could boost investor sentiment toward Nvidia, its partners and other companies in the AI space.
Artificial intelligence (AI) chipmaker Nvidia (NVDA) is scheduled to report second-quarter results after the close of trading on Wednesday, and investors will be watching to see what the company's results suggest about the strength of AI demand.
Ahead of Nvidia's earnings release on Wednesday, Quincy Krosby, chief global strategist at LPL Financial, said the company's results “may be seen as the most significant 'signal' about the outlook for AI spending globally.”
Nvidia earnings expected to show strength in AI demand
Crosby said that based on analysts' forecasts, Nvidia's results are expected to “reaffirm that demand remains strong,” which could boost investor sentiment for the stock and others in the AI space.
Nvidia has positioned itself as an early winner in the AI boom, with its stock price more than doubling since the beginning of the year despite headwinds in recent months.
Many of Nvidia's partners and other companies in the AI space, such as Arm (ARM) and Micron Technology (MU), have seen their shares rise since the start of the year on expectations of AI-driven growth.
Nvidia shares were down 1.9% to $125.84 on Wednesday afternoon ahead of the company's earnings report, but most analysts expected further gains and maintained a “buy” or equivalent rating on the stock.
