As investors shift their attention to the technology industry and artificial intelligence trade following the stalling of an election-fueled rally, Nvidia Corp.’s results in the upcoming week could help steer the US stock market in the right direction.
Nvidia’s gold standard AI division has fueled an over 800% increase in shares over the last two years, propelling the semiconductor giant to the top of the global market value rankings.
Investors stated that Nvidia’s size significantly influences market benchmarks like the S&P 500 and Nasdaq 100 and that its November 20 results would also serve as a barometer for the market’s appetite for tech stocks, the AI trade, and attitude toward equities in general.
Following the US election on November 5, which granted Donald Trump a second term as president and his party, Republicans, control of Congress, the benchmark S&P 500 has retreated from all-time highs. According to Garrett Melson, Natixis Investment Managers’ portfolio strategist, the market is “looking for direction right now.
If those results are pretty strong, that tells you that there’s still momentum behind that investment and that trade, and I think that will help to broaden our risk appetite.” Due to its leading position in AI, Nvidia has seen an incredible financial performance and a sharp increase in share price. According to LSEG data, the company’s revenue increased by more than 80% to $33 billion in the third quarter of its fiscal year, and it is anticipated to report net income of $18.4 billion.
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