Splunk Has Been Overshadowed by Nvidia. The Stock’s About to Rally.

Investors are hopeful that Nvidia's upcoming earnings report can reignite the U.S. stocks rally, following a 2023 increase in the company's shares and the broader equity rally.

Nvidia's blowout quarter drives shares to an all-time high, while other tech stocks and the Nasdaq surge, and multiple price target hikes for Splunk boost its stock.

Semiconductor giant Nvidia has reported impressive Q2 2024 earnings, with record revenues of $13.5 billion, up 101% YoY, and earnings per share surging 854% YoY; however, despite beating analyst predictions and providing positive future forecasts, investors have sold off Nvidia shares.

NVIDIA's Q2 earnings showed high growth and a positive outlook, but the AI hype may be fading, and the stock's valuation is overstretched, leading to a recommendation to sell with a potential 40% decline in the next three months.

Machine learning specialist Splunk has outperformed the stock market in August, with its stock price increasing by 7%, thanks to strong quarterly financial results and its ability to provide powerful machine learning tools to businesses.