What you need to know before the Nvidia earnings report: Will it bring a rally or a sell-off?

Nvidia’s second quarter earnings report for 2024, whose share value has been steadily increasing since artificial intelligence started to be talked about a lot around the world, will be announced this evening. The Nvidia earnings report is also of great importance for the recently falling technology stocks. Nvidia’s revenues, whose share value has increased 157% since the beginning of the year, are expected to increase by 112%.

What you need to know before the Nvidia earnings report: Will it bring a rally or a sell-off?

In 2022, with artificial intelligence being talked about at the level of craze worldwide, chip production has gained a special importance. Chips, also known as GPUs and capable of processing large amounts of data, have become the most important elements for AI. This situation brought chip manufacturers such as Nvidia to the forefront.

Nvidia, which has increased its market value 9 times since 2022 and became the company with the world’s largest market capitalisation in June, albeit for a short time, has now become one of the companies on everyone’s radar.

Expectations are high again, but…

The company, which even prevented the decline in the markets with its earnings reports in the past quarters, is expected to increase its revenues by 112% in this quarter. However, the revenue growth, which was 250 per cent in the same period last year, has started to slow down. Nvidia shares lost value with the declines in the US markets in recent weeks, but then started to rise again.

“The world’s most important stock…”

Experts draw attention to the volatility in Nvidia shares and predict a sharp decline in Nvidia revenues if the demand for artificial intelligence decreases.

Eric Jackson, founder of EMJ, which develops positioning software in technology stocks using artificial intelligence and machine learning technology, told CNBC that Nvidia is currently the most important company and stock in the world:

“If they break an egg, it will be a big problem for the whole market, but I think there will be a good earnings report and the market will move upwards.”

The last 3 quarters have always increased by 3 digits

As it is known, companies such as Microsoft, Alphabet, Meta, Amazon and Tesla often buy Nvidia chips to run artificial intelligence models and provide intensive data processing. Nvidia’s revenues have always increased by 3 digits, at least 100%, in the last 3 quarters. However, as we mentioned earlier, although analysts expect a 3-digit increase again, they expect it to go at a slowing pace. Growth in the Q3 earnings report in October is currently expected to be around 75%. So the decline will continue according to analysts.

As a result, Nvidia’s earnings report after the US markets close this evening may affect the course of cryptocurrencies in the short term as well as tomorrow’s trading day.

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