Key Takeaways
How Nvidia's stock performs after Wednesday's earnings report could also have a bearing on other artificial intelligence stocks, including Nvidia's partners Micron Technology Inc. and Arm Inc. Shares of Micron and Arm have surged this year along with Nvidia. Nvidia and other chip stocks rose on Tuesday amid rising expectations for the AI chip maker's performance.
Artificial intelligence (AI) chipmaker Nvidia (NVDA) is scheduled to report earnings after the close of trading on Wednesday, and expectations are rising for the AI giant.
Nvidia's quarterly results could send a big volatility through its stock price, which could affect the share prices of several other AI-related stocks, including partners such as Micron Technology (MU) and Arm (ARM), and have ripple effects across the market.
Micron Technology provides Nvidia with memory solutions for its AI chips, while Nvidia uses Arm-based systems for a range of products.
Taiwan Semiconductor Manufacturing Co. (TSM), which makes Nvidia chips, could also be affected, as could Dell Technologies (DELL), which uses Nvidia chips in its products.
Micron Technology, Arm, TSMC and Dell have all seen their shares rise this year, with Nvidia shares up 159% since the beginning of the year as of Tuesday's close. Arm shares are up nearly 75% over the same period, while TSMC is up 64%, Dell is up 46% and Micron is up 15%.
Nvidia shares closed up 1.5% on Tuesday amid rising expectations for the chipmaker's earnings. Other semiconductor stocks also rose, with the Philadelphia Stock Exchange's Semiconductor Sector Index (SOX) up 1.1%.
