As the poster child for the AI rally that his driven indices to record highs, all eyes are peeled.
Expectation remain high for their earnings, which could cause downside risk to NVDA and the indices in the event of a miss, as its weight has increased to almost 3% of the S&P 500's net income.
As of Friday's close, options markets predicted an 8.6% swing in Nvidia for the session following earnings. According to Citigroup data, such a move could swing the S&P 500 by 0.4%, making it the fourth-largest impact on the benchmark in the last 12 years.
A marked beat on expectations could cause further strength in US stocks, as the AI FOMO rally regains steam.
Revenue $26.08, est. 24.69b Adjusted EPS $6.12, est. $5.65 Gaming revenue 2.6b, est. 2.62b Adjusted gross margin 78.9%, est. 77% Data center revenue 22.6b, est. 21.13b Automotive revenue 329m, est. 292.4m Cash dividends raised 150% to 0.01/share on post-split basis Ten-for-one forward stock split effective June 7, 2024 Sees 2Q revenue 28.0B plus or minus 2%, est. 26.8B
NVDA beats across the board, boosting dividends by 150% and announcing a 10-for-1 stock split
NVIDIA Shows Sustained AI Momentum
Tech rallied in late hours after NVIDIA's solid results and outlook bolstered confidence in the artificial intelligence frenzy that has powered the stock rally.
The chipmaker soared in late trading after predicting another blowout sales gain for the current quarter. A $270 billion exchange-traded fund tracking the Nasdaq 100 climbed.
Second-quarter revenue will be about $28 billion, the company said in a statement Wednesday. Analysts on average had predicted $26.8 billion. Results in the fiscal first quarter, which ran through April, also beat projections.
The stock market fell during regular trading hours as the most recent Federal Reserve minutes indicated that officials are not in a hurry to lower interest rates. After fighting for direction for most of the session, the S&P 500 fell sharply as several Fed officials expressed concern about the extent to which policy is constraining the economy - but the minutes also indicated policy "was regarded as restrictive. Treasuries were under pressure, with shorter maturities underperforming.
US two-year yields climbed four basis points to 4.87%. The dollar rose, weakening the appeal of commodities priced in the currency.
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