Nvidia's Balance Sheet: Will It Shape Artificial Intelligence Investments?

Nvidia's Earnings: Will It Shape AI Investments?

In recent years, the growing interest in artificial intelligence systems has allowed Nvidia (**NVDA**) to capitalize on strong chip demand. Tonight, after the market closes, Nvidia will reveal its eagerly anticipated earnings report. Three years after the launch of ChatGPT, investors are increasingly concerned about the sustainability of the AI boom.

Concerns about artificial intelligence and the question of "is it a bubble?" have created a notable correction in U.S. indexes, led by technology stocks. Consequently, investors are closely monitoring Nvidia's financial results as a confirmation for both the company and the overall sentiment in the sector.

High Expectations and Analyses

Brian Stutland, the Chief Investment Officer at Equity Armor Investments, emphasizes the significance of the company's role, stating, "With each new quarter, Nvidia's results become increasingly important for providing clarity on where AI is headed and how much is being spent."

Analysts are predicting that Nvidia will report $54.9 billion in revenue and $1.25 in earnings per share for the third quarter. These figures indicate year-over-year increases of 57% and 54%, respectively. The growth of the data center segment, driven by increased demand for the Blackwell and Rubin platforms, will play a crucial role.

Market Dynamics and Expectations

Data from the options market further underscores Nvidia's central importance in the sector. The number of open positions stands at 20.5 million, and the Put/Call ratio is at 0.89, indicating that investors believe in an upward movement. However, the anticipated volatility reaching 98% suggests that the market expects significant movement and may render the stock more volatile in the short term.

Bank of America has updated its revenue forecasts for Nvidia's data center segment, predicting that the company will be ahead of its competitors in the second half of 2026. Additionally, Morgan Stanley has raised its revenue estimate for 2026 to $273.2 billion, affirming Nvidia's supplier position in the AI ecosystem.

In conclusion, Nvidia's earnings will not only assess financial figures but also test market confidence. Results that exceed expectations could trigger a renewed upward movement in technology stocks. However, it should be noted that the intense positioning in the options market and high volatility may limit the reactions post-earnings.

Other Affected Stocks

Nvidia's earnings will also be a significant trigger for other technology and semiconductor stocks that show high correlations. Particularly, stocks that have demonstrated a strong correlation with Nvidia since the beginning of the year could be directly affected by the post-earnings movement. These stocks include:

• Taiwan Semiconductor Manufacturing Company (**TSM**)
• Marvell Technology (**MRVL**)
• Applied Materials (**AMAT**)
• SuperMicro Computer (**SMCI**)
• Tower Semiconductor (**TSEM**)
• Advanced Micro Devices (**AMD**)
• Palantir Technologies (**PLTR**)
• Lattice Semiconductor (**LSCC**)