How Will Nvidia's Results Impact Investors?

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

In trading on Thursday, shares of Nvidia and its rival Broadcom showed a decline. In particular, the fact that cloud groups such as Oracle have lost a third of their value since September attracted attention. The U.S. stock markets experienced one of their worst days in recent years, largely tied to the artificial intelligence frenzy.

Barclays analysts noted that Nvidia's earnings, to be announced on Wednesday, November 19, could be a determining factor regarding the continuation of the AI supercycle and related investments. They urged investors to observe market conditions and wait for the official data to be released.

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

Barclays analysts emphasized that the upcoming data will be critical for the state of the U.S. economy. They state that due to investors expecting a possible rate cut, the market dynamics necessitate a balance of being 'very hot, very cold.'

Finally, analysts indicated that November and December are generally the 'most favorable' periods for stock performance, predicting that managers who have had a difficult year may develop some strategies for their year-end performance during this time.