Will Nvidia’s Earnings Results Steer Tech Stock Direction?

As the second quarter earnings reporting season winds down, the markets are eagerly awaiting the earning results from Nvidia (NVDA) later today.  Those results and the company’s commentary on artificial intelligence (AI) have the potential to set the tone for tech stocks and even the broader stock market.  Shares of Nvidia rallied to a record high Tuesday and have more than tripled this year, making it the biggest contributor to the +36% rally in the Nasdaq 100 Stock Index ($IUXX) (QQQ) this year. 

The rally in Nvidia has helped fuel the sharp rally in the Nasdaq 100 this year, making today’s earnings report more significant than a typical technology company’s earnings release. Investors and analysts will key on any forward guidance that Nvidia gives with its earnings to judge if the AI craze has led to a jump in demand for its chips.  Melius Research said, “What Nvidia says about guidance for the remainder of fiscal 2024 drives the sentiment around the entire AI thesis that has driven the market.”