A week separates us from the publication of Nvidia’s quarterly report, and since the second week of August, the company’s shares have resumed growth after some correction at the beginning. In fact, they are now approximately 6.1% away from the historical maximum, and in the absence of factors negatively affecting the quotes, they may well update it next week.
Image source: NVIDIA
The main catalyst for Nvidia’s share price movement, of course, should be quarterly reporting. According to Barron’s, analysts on average expect the company to generate revenue of $28.65 billion for the last quarter, and are also guided by a forecast of $31.5 billion for revenue in the current quarter. The further movement of the company’s stock price will largely depend on whether it will be able to cover both values at its quarterly earnings conference. Since the beginning of the year, Nvidia shares have grown in price by almost 160%. From a local minimum in early August, they rose by 30%.
The bulk of Nvidia’s clients and partners, as Bloomberg explains, have already reported on their quarterly results. Those of them, which together form more than 40% of the company’s revenue, emphasized their willingness to spend serious funds on the development of artificial intelligence systems. According to analysts at Allspring Global Investments, corporations of this size have virtually unlimited budgets when it comes to threats to their competitive position. Market participants estimate the capacity of the segment of infrastructure solutions for AI at a solid $6 trillion. Representatives of UBS also believe that capital expenditures of corporations next year could grow by 25%, and a significant part of it will be used to finance data centers.