Nvidia's Income Report: The Super Bowl of the Market!

Nvidia Corp (NASDAQ: NVDA) is considered one of the most significant market events of the year with its upcoming earnings report. Nvidia is expected to report on Wednesday, and Wedbush Securities analyst Dan Ives expressed that expectations are extremely high.

In a conversation with CNBC, he described this event as a 'Super Bowl' not just for technology but for the entire market, emphasizing that trading floors would quiet down as investors awaited the numbers. Ives stated that Nvidia's dominance is unparalleled, referring to CEO Jensen Huang as the 'father of Artificial Intelligence' and mentioning that the global demand for the company’s chips is about 12 to 1, indicating that supply is a real constraint.

Ives remarked, "On Wednesday evening, it will be so quiet in trading floors around the world that you could hear a pin drop."

Deepwater Asset Management analyst Gene Munster suggested that it is not enough for Nvidia to just meet the high expectations. Munster pointed to the roadmap outlined by Huang, highlighting the company's goal of approximately $500 billion in revenue. He noted that this target implies a 54% growth next year, which is significantly higher than the 41% growth expected on Wall Street.

Both analysts agree that the artificial intelligence cycle is still in its early stages, comparing the current environment to the 'third inning' of a long-term technological shift. Munster framed high-profile sell-offs by investors like Peter Thiel and SoftBank Group as profit-taking, asserting that this does not indicate Nvidia's growth is coming to an end.

Analysts predict Nvidia’s third-quarter revenue could rise to $54.84 billion from $35.08 billion in the same period last year. Nvidia had previously forecasted its third-quarter revenue to be between $52.92 billion and $55.08 billion. On Monday, Nvidia shares closed at $186.60, down 1.88%, and fell to $185.33 in after-hours trading. The company ranks in the 98th percentile for Growth and the 92nd percentile for Quality in Benzinga's Edge Stock Rankings, indicating strong performance compared to its industry peers.

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