Announcing the results may contribute to enhancing confidence in the market or increasing the state of tension among investors, especially at a time when the momentum witnessed has stopped. Stock markets After the great heights recorded in the aftermath American elections The last.
Expectations are based largely on the abilityNVIDIA“To provide strong results that reflect the growing demand for its processors used in applications artificial intelligencewhich is what many analysts point to as the decisive factor in moving the markets.
Recently, it showed Technology sector A remarkable ability to grow, but the continuation of this momentum depends mainly on developments in the performance of major companies such as “NVIDIA“, as the market expects that these results will contribute to stimulating trading activity and pushing the indices higher.
Busy week
With the release of major economic data and company profits Nvidia In particular, this week is scheduled to provide important signals of global market trends, according to a Euro News report.
- This week, the market will focus on rapid economic data for the manufacturing and services sectors (purchasing managers’ indexes) from major economies, including… Eurozone The United Kingdom and the United States.
- In addition, artificial intelligence giant NVIDIA is scheduled to announce its quarterly earnings, to gauge the sector’s growth trajectory Technology.
- Investors will also need to continue to monitor the strength of the US dollar and its impact on commodity prices and other currencies in the G10 and emerging markets.
Nvidia is scheduled to reveal third-quarter earnings on Wednesday, November 20. The company’s profits are expected to benefit the most from the boom artificial intelligence $0.74 per share on revenue of $32.81 billion, representing an increase of 85 percent and 81.1 percent year over year.
NVIDIA has become the world’s largest company by market value, overtaking Apple this month after joining… Dow Jones Industrial Average. Its earnings results are considered a very important indicator for the technology sector in Global markets.
Positive prospects
Managing Director of IDT Consulting and Technology Systems, Mohamed Saeed, tells Iqtisad Sky News Arabia that NVIDIA’s results in the second quarter of 2024 were very positive, as it achieved a very strong performance.
The company recorded an increase in revenues during the second quarter to $30 billion, an increase of 15 percent over the previous quarter, and an increase of 122 percent on an annual basis.
As recorded Revenue A record amount during the same quarter for data centers amounted to $26.3 billion, an increase of 16 percent compared to the first quarter, and 154 percent on an annual basis.
According to Saeed, expectations indicate a significant increase in revenues during the third quarter, as Nvidia’s revenues are expected to range between $33 billion and $35 billion. This is due to the continued high demand for chips used in artificial intelligence, especially with the launch of the new “Blackwell” model, which has been widely accepted in the market.
Data from the London Stock Exchange Group (LSEG) indicate that the company is expected to record net income of $18.4 billion during the third quarter, and an increase in Revenue To 33 billion dollars.
Saeed’s expectations indicate that the wave of artificial intelligence is still accelerating, with the increasing interest of major companies such as Microsoft and Meta in investing in this field, stressing that these companies represent major clients of NVIDIA, which supports the company’s positive profit and revenue expectations. .
But despite the expected positive performance, many investors remain cautious about the huge investments being made in the artificial intelligence sector. It is expected that this reservation will lead to waves of selling to take profits even if positive results are announced, as some are concerned about the huge amount of spending in this sector.
Despite Nvidia’s current leadership in the chip market dedicated to artificial intelligence, Saeed believes that the company may face challenges soon as new competitors enter this promising market.
The market value of NVIDIA is $3.482 trillion, surpassing Apple, which now has a market value of $3.401 trillion, and Microsoft, which has $3.085 trillion.
The shares of the leading company in artificial intelligence chips have risen by about 184.73 percent since the beginning of the year (according to companiesmarketcap data), after rising by 235.88 percent last year.
Market trends
In exclusive statements to the “Eqtisad Sky News Arabia” website, Joe Yarak, head of the global markets department at Cedra Markets, stated that NVIDIA has played a pivotal role in shaping global market trends since October 2023, due to its strong influence on the artificial intelligence sector.
Yarak pointed out that Nvidia raised its expectations for the third quarter after a strong performance in the second quarter, which prompted the markets to react strongly to these developments, adding: Artificial intelligence has become a vital sector in the American markets, and this sector is expected to remain the main driver of growth in the medium and long term.
He also explained that NVIDIA’s inclusion in the Dow Jones Index reflects its importance and pivotal role in the technology sector. He stressed that companies that invest in artificial intelligence in a sustainable manner will remain at the forefront of the financial and technological markets.
He also pointed out that investing in artificial intelligence may achieve tangible results in the long term, which enhances confidence in the sector.
He added that Nvidia’s strong performance gives a major boost to technology-related companiesartificial intelligenceEspecially since NVIDIA is one of the largest companies in terms of market value, which makes it have a large and rapid impact on the American markets.
He concluded his speech by emphasizing that NVIDIA’s positive results are a strong indicator of the success of the technology sector, and confirm that artificial intelligence represents one of the most important future axes of economic growth.
