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The September 28 earnings report is being called the most important event of the year for the stock market.
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Tech giant Nvidia will hold its second quarter earnings call on Sep. 28 and analysts are having a field day discussing the potential implications. With investors expecting to see profits of more than double year-over-year as well as record-breaking revenue, many stock market insiders are calling it the event of the year.
Nvidia’s stock has been on a rocket to the moon for the past two years. In 2022, at its lowest, the company’s stocks dropped to around $11 a share, giving it a market capitalization of approximately $250 billion. In the mid 2024 market, that would place it slightly beneath Toyota in cap value. As of Aug. 23, NVDA is trading at $128.52. This makes it the second most valuable company in the world by market cap ($3.166 trillion) trailing only Apple ($3.443 trillion).
Q2 Earnings
The second quarter wasn’t particularly kind to the tech industry. While there were some outliers in Apple and Meta, nearly every other technology outfit in the top 20 ended the quarter with stock trending downward over a 30-day period.
Related: Tech stocks plummet as Intel nosedives, Nvidia faces antitrust probe
Now that Nvidia is finally set to report its earnings, the calculus around the tech industry’s overall performance may change. Analysts are predicting the company’s Q2 earnings and revenue will break the records set in the first quarter of 2024.
Analyst optimism
An analyst for Los Angeles-based private investment firm Wedbush, Dan Ives, told news outlet Quartz that they were expecting the Nvidia call to be the “most important week for the stock market this year and potentially in years.”
Another analyst, Ethan Feller of Zacks investment research firm, wrote that the earnings call could set Nvidia on the path towards a $10 trillion market capitalization within the next five years if current trends continue.
While these predictions may seem optimistic, it bears mentioning that Nvidia stock has compounded at an annual rate of nearly 100% over the past five years.
Related: China accessing high-level AI chips banned by the US
This article first appeared at Cointelegraph.com News
