:max_bytes(150000):strip_icc()/GettyImages-2018746226-b9146a6c66404aea99dd6a470ac9ecfd.jpg "What Nvidia’s Earnings Could Say About AI Demand")
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Key Takeaways
- Nvidia is set to report earnings after the bell Wednesday, with investors likely watching what the chipmaker’s results could say about artificial intelligence (AI) demand.
- LPL Financial Chief Global Strategist Quincy Krosby said Nvidia’s results could be viewed as a “tell” for the AI spending outlook.
- Strong growth would indicate robust demand for AI infrastructure, and could boost investor sentiment for Nvidia, its partners, and others in the AI space.
Artificial intelligence (AI) chipmaker Nvidia (NVDA) is set to report its fiscal second-quarter earnings after the bell Wednesday, with investors likely watching what its results could signal about the strength of AI demand.
Nvidia’s earning results could be “viewed globally as the most significant ‘tell’ about the outlook for AI spending,” LPL Financial Chief Global Strategist Quincy Krosby said Wednesday, ahead of Nvidia’s results.
Nvidia’s Earnings Expected To Signal Strong AI Demand
Krosby said that based on analysts’ projections, Nvidia’s results are expected to “confirm that demand remains strong,” which could boost investor sentiment for the stock and others in the AI space.
Nvidia has established itself as an early winner of the AI boom, with shares more than doubling in value from the start of the year, despite some headwinds in recent months.
Many of Nvidia’s partners like Arm (ARM) and Micron Technology (MU), as well as other companies in the AI space, have climbed since the start of the year amid expectations of AI-driven growth.
Nvidia shares were 1.9% lower at $125.84 Wednesday afternoon, ahead of the company’s earnings, though most analysts maintained a “buy” or equivalent rating for the stock, anticipating further gains.