Nvidia Is the Final Hurdle for Mega Tech’s Earnings Victory Lap

A surprisingly strong earnings season for big tech reaches its grand finale Wednesday afternoon when Nvidia Corp., the artificial intelligence chipmaking giant, reports its results and gives a much anticipated outlook that could set the tone for the second half of the year.

Investors were nervous as technology companies started reporting, with questions about whether the AI boom had run too far and if the group could meet the lofty expectations set for it. A month later, most of those concerns have been put to rest with the S&P 500 Index sitting at an all-time high on the back of strong corporate profits.

So, Nvidia arrives with the expectation that it will confirm the enthusiasm — and potentially offer a glimpse into the future for stocks. The company’s shares have been on a rocket ride since its blow-out fiscal fourth-quarter results and outlook a year ago, soaring 212% and adding roughly $1.5 trillion in market value in the past 12 months. With a market capitalization of $2.3 trillion, Nvidia’s weighting in the S&P 500 is more than 5%, up from 2.2% a year ago.


“It is the leader, and if the demand remains strong in Nvidia then you know that means demand is going to be strong across the board,” said Jay Woods, chief global strategist at Freedom Capital Markets. “That will dictate not only the next leg in the AI-deemed stocks in the semiconductor space, but it could dictate the market.”

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