Nvidia Earnings Loom Large for AI Movement and Tech Sector
• Nvidia's earnings report on Wednesday is highly anticipated given the company's large role in the tech sector and AI industry. The stock is up 47% in 2023 amid a frenzy over AI.
• Forecasts call for adjusted Q4 EPS of $4.60, up over 700% year-over-year, and revenue of $20.43 billion. A miss could spur a tech selloff.
• Options markets are betting on an 11% stock move in either direction around earnings. This equals a $200+ billion swing in market valuation.
• Nvidia is now the 3rd largest S&P 500 company with a $1.8 trillion valuation, recently surpassing Amazon and Google.
• The earnings report and guidance could serve as a barometer for the promising but lofty AI movement. The stakes are high for tech valuations.