In less than an hour from now, Nvidia, world’s largest corporation in terms of market cap will release its quarter earnings report. Over the past few weeks the markets have been buzzing with anticipation. Experts have raised concerns over the AI bubble and suggested that a crash is imminent. And for many, Nvidia might be the starting point of a long domino effect.
The speculations started when Nvidia cross the $5 trillion mark in market capitalization. Many raised concerns over the corporation, calling the stocks overpriced. Experts, analysts and researchers alike have pointed out that the market – especially the US markets are headed towards a correction. And social media called today – November 19 as the day of reckoning. Some have pointed out that Nvidia’s earnings report might swing the stock by 7%. This, however, could be in either direction.
Nvidia’s Earnings Report Release Time
The corporation will begin a conference to announce its third quarter earnings report after the close of today’s market. The report will be made available on the investors’ website at 4 pm ET. Earnings call begins at 5 pm ET. It will be available on Nvidia’s Investor Relations link here.
Nvidia’s earnings are expected to cross $50 billion for the first time. This is expected on the heels of an exponential increase in the demand for data centres. Some have called the revenue exceeding $54 billion for the fiscal quarter. This, if achieved, would be a record increase of $35.1 billion.
The markets opened on a positive note but have stayed tepid and speculative so far. Nvidia shares opened at a high of 3% in morning trading but are now down by 4%. This decline, over the past five trading sessions is fuelled by tech sell-off.
Recent divestment of Softbank and large investments in Open AI have not buoyed the sentiments much. Even as tech giants remain bullish on AI spending, investors are not convinced. Many have been vocal about the AI capex and called to reason the inflated prices.
More to come
Apart from Nvidia’s earnings reports, the markets may still have a bigger test to sail through. After a six week delay due to shutdown of the US Government, the jobs report is scheduled for release early Thursday morning. Economists are hoping for gains of about 50,000 positions.
As for unemployment, the August report had shown an unemployment rate at 4.3%. As per the estimates shared by Federal Reserve Bank of Chicago, the unemployment rate might have risen marginally to 4.35% in September.
Will Markets Crash?
For all the naysayers, a sound level-headed person would say – there is no set rule. Markets are not driven by logic and calculations alone. They also respond to overall human sentiments. The impact of the report – positive or negative would be felt tomorrow.
How it will swing, only time will tell. What is important at present is to keep the eyes and ears open.