NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) upcoming earnings report, set to be released after Wednesday's close, is being hailed by Wedbush analyst Dan Ives as the most crucial of the year, with the potential to shape market trends far beyond 2024.
The chipmaker, whose CEO is described colorfully by the Ives as the "Godfather of AI," is at the heart of a generational shift in technology, with its GPUs seen as the essential "new oil and gold" for the tech sector.
Its dominance in AI chip production, coupled with an anticipated $1 trillion in AI capital expenditure over the coming years, places Nvidia at the center of the Fourth Industrial Revolution. This report is expected to confirm massive enterprise demand and validate NVIDIA's critical role in the AI landscape.
"We continue to estimate for every $1 spent on an NVIDIA GPU chip there is a $8-$10 multiplier across the tech sector which speaks to our firmly bullish view of tech stocks over the next year," said Ives in a note.
As for the specifics, the giant is expected to post earnings of $0.65 per share on $28.24 billion in revenue, with a "whisper number" of $0.71 per share, according to a report carried by Forbes.
The stock, already up over 160% this year, is trading near record highs, reflecting its status as a bellwether for both the tech sector and the broader market.
Beyond NVIDIA, investors will also be monitoring Salesforce, expected to rebound after a soft quarter, as tech spending on AI continues to drive larger deals.
With the Federal Reserve poised to begin a rate-cutting cycle and macroeconomic conditions favoring a soft landing, this report could serve as a catalyst for tech stocks moving higher into 2025, solidifying Nvidia’s role as the key player in the ongoing AI revolution.