How Will Nvidia's Results Affect Investors?

Nvidia’s quarterly results could play a critical role in determining whether interest in artificial intelligence technology will continue. According to Barclays analysts, investors are expected to adopt a cautious stance ahead of this report.

In trading on Thursday, shares of Nvidia and its competitor Broadcom showed declines. Notably, the value of cloud groups such as Oracle has decreased by a third since September. The US stock markets experienced one of their worst days in years, largely due to the artificial intelligence craze.

Barclays analysts stated that Nvidia’s earnings, to be announced on Wednesday, November 19, could be a decisive factor regarding the continuation of the artificial intelligence supercycle and the related investments. They advised investors to monitor market conditions and wait for official data to be announced.

The Federal Reserve lowered interest rates by 25 basis points in its meetings in October and September. However, uncertainty remains about whether a future rate cut will occur based on new data. According to CME's FedWatch Tool analysis, there is still a 50-50 chance regarding this matter.

Barclays analysts emphasized that the forthcoming data will be critical for the US economic situation. They noted that investors expect a possible rate cut, leading to a market dynamic that requires a balance of 'very hot, very cold.'

Finally, analysts indicated that November and December are generally considered 'the most positive' periods for stock market performance, and they expect that executives who have had a challenging year may develop strategies for year-end performance during this period.