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Strong demand for generative AI and LLM-supportive GPUs from data center operators is likely to have boosted NVIDIA's (NVDA) Q2 performance.
A key topic for Nvidia Corp. investors nowadays concerns the company's new Blackwell chip lineup, given reports that shipments might be slightly delayed at the outset.
Nvidia's momentum persists with a 5.75% stock gain, despite recent insider selling of nearly $500M by CEO Jensen Huang, indicating potential valuation peak risks and investor caution. Blackwell series GPUs and Nvidia Inference Microservice ('NIM') drive continued AI demand, but diversification in AI chips from big tech firms like Microsoft and Alphabet increases competitive pressures. Nvidia's YoY revenue growth is expected to slow from 111.7% in Q2 2025 to 39.5% by Q2 2026, signaling potential valuation contraction, making it a Hold for now.
Nvidia's GPUs are powering the AI arms race. Nvidia has achieved record-level profits thanks to the elevated demand.
Wall Street analysts are ratcheting up expectations ahead of the chip maker's report next week.
Nvidia's stock retreated after reaching its peak earlier this summer. Investors are right to have concerns, but I think they are overblown.
Index futures trading point to a slightly positive start on Thursday, with some key Main Street data likely directing the market. Sentiment could remain guarded as traders look ahead to the 3-day Jackson Hole Symposium that kickstarts on Thursday, with Federal Reserve Chairman Jerome Powell delivering his address on Friday.
Nvidia Corp. NVDA shares rebounded on Wednesday, taking the broader market higher along with it, and a portfolio manager on Wednesday weighed in on the near- and medium-term outlook for the stock.
Since 1980, stocks have more than doubled the performance of the S&P 500 during the 12-month period following a stock split announcement. Walmart annouced a 3-for-1 stock split in January, and Simeon Gutman at Morgan Stanley sees a bull-case scenario in which shares surge 47% during the next year.
The U.S. Federal Reserve is widely expected to cut interest rates at its upcoming September meeting. Nvidia will report its latest financial results on Aug. 28, and I think they will be far more important for the direction of the stock market.
Nvidia's revenue growth rate will likely be slower than in past quarters. Nvidia must maintain its margins to warrant its premium valuation.