Unlocking the Secrets of Nvidia’s Fiscal Third-Quarter Results
This week, all eyes are on Nvidia (NASDAQ:), the AI giant, as the market eagerly awaits its fiscal third-quarter results. Will Nvidia continue its streak of beating expectations by $2 billion and raising guidance by an additional $2 billion, or is something new on the horizon?
Anticipated Results and Projections
- If Nvidia delivers another ‘2-and-2’ quarter, it might not be enough this time as the market already expects this move.
- Predicted revenue: $34.5 billion with a forecast of $36.5 to $37 billion.
- Introduction of the new Blackwell chip could potentially disrupt this pattern.
Understanding Nvidia’s Revenue Pattern
- The revenue pattern may be linked to how new supply is introduced compared to existing orders.
- Unless next quarter’s revenue guidance is unexpectedly between $38 and $40 billion, there may not be much room for an upside surprise.
Market Trends and Potential Impact
- Nvidia’s stock has been range-bound, moving within a rising wedge pattern since mid-June.
- Break below $140 could spell trouble not just for Nvidia but for the entire market.
- The semiconductor sector is struggling, with the Semiconductor ETF trading at the lower end of its rising wedge pattern.
Global Trends in Financial Markets
- Small caps took a hit recently, indicating a shift in market trends.
- The US rates are on the rise, closing at 4.44% this week, driven by various factors.
- Rising rates are a global trend, with Japanese and British yields also increasing.
The Impact of Rising Rates on the Stock Market
- The key question is whether rising rates will affect the stock market negatively.
- Nvidia’s performance could be a catalyst for the market’s decline, especially with rising rates exacerbating the situation.
In Conclusion
- Nvidia’s fiscal third-quarter results hold the key to market sentiments.
- The impact of rising rates on the stock market remains a significant concern.
- Stay informed and watch out for Nvidia’s results as they could have a ripple effect on the financial landscape.
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