NVDA reports quarterly earnings on Wednesday, and expectations are high as always. However, traders are on alert about AI spending, which is causing a degree of trepidation. Nvidia has become the goliath of the S&P 500, with a colossal ~8% weighting, and its position at the centre of the AI evolution has made it the bellwether of the broader market. A massive 40% of its revenue comes from Meta, Microsoft, Alphabet, and Amazon, with the “Magnificent Seven” becoming intrinsically entwined.
- Quarterly revenue is expected to come in at $US46.14bn and EBITDA $US29.58bn.
- A gross margin of 72.1% is expected.
Volatility is on the agenda in the US this week, and option traders are pricing in a 6% move in either direction, so hold your hats—it’s likely to move.
MM is cautiously bullish on NVDA
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