Good news for Nvidia this week will translate to good news for Supermicro. Supermicro's upcoming stock split could provide a significant catalyst.
Nvidia is slated to lift the hood on its second-quarter operating performance after the closing bell on Aug. 28. Nvidia's historic gains have been fueled by overwhelming demand for its H100 graphics processing unit (GPU) and otherworldly pricing power for its hardware.
Will Nvidia report a record Q2 earnings on Wednesday night? August's heavy dose of macro data cools off this week, allowing investors to take stock of a strong earnings season. Certain chipmakers have not navigated the AI boom so well, and one foreign semiconductor company provides a sales update in early September.
Big Tech companies like Microsoft, Alphabet and Meta are investing billions in data center infrastructure to support generative AI. But the proliferation of data centers has led to surging energy demand as well.
Evercore ISI recently raised its price target on Nvidia stock from $145 per share to $150 per share. Nvidia is seeing very strong demand from hyperscale cloud companies.
The "software-defined car" trend is revolutionizing the auto industry, with Volvo's EX90 SUV exemplifying the shift towards vehicles packed with digital technology. Nvidia's powerful chips are crucial for AI and automotive advancements, with significant revenue growth driven by high demand for their supercomputing capabilities. Despite export restrictions to China, Nvidia's automotive business remains promising as more carmakers adopt advanced electronic architectures that require the chips.
Major U.S. equities indexes were mixed to open a new trading week that includes a busy calendar of corporate and economic data releases.
Semiconductor stocks lost ground Monday, ahead of the latest financial results from artificial intelligence (AI) darling Nvidia (NVDA), due for release after the markets close Wednesday.
Nvidia seems attractively valued for the growth that it may deliver. Results from other AI hardware companies suggest that it is on track to deliver a solid set of results.
AI giant Nvidia's second quarter earnings are expected to show revenue doubled, although it's unclear whether that will meet investors' lofty expectations.
The market in recent weeks has been gripped by uncertainty about the state of the economy and the outlook for interest rates. Fed Chair Jerome Powell on Friday put much of that uncertainty to bed when he signaled the central bank would begin cutting interest rates at its next meeting in September.
BTC explodes on Fed rate cut hopes. Thus, keep an eye on stocks like NVIDIA (NVDA), Coinbase Global (COIN) and Block (SQ) that can gain from BTC's upsurge.