Advertisement
The Nasdaq Composite closed down 1.13% at 17,553.67, while the S&P 500 fell 0.6% to 5,592.03 on Tuesday, August 28, 2024, as Wall Street braced for NVIDIA’s second quarter earnings report after the bell.
NVIDIA, the AI chip giant, saw its shares dip 1.96% to $125.785 ahead of its highly anticipated Q2 2025 results. The stock has surged 159% year-to-date, raising questions about how much further it can run.
Analysts expect NVIDIA to report revenue of $28.6 billion, a 112% year-over-year increase. However, there are concerns that the company’s gross margins may have slipped from the previous quarter due to investments in new technologies.
Investors will be closely watching NVIDIA’s results and guidance for any signs of a slowdown in AI demand, product delays, profit margin pressures, and data center revenue growth. The company’s plans for its growing cash reserves will also be in focus.
The market’s reaction to NVIDIA’s earnings could have significant implications for the tech sector and the broader market. The report is being billed as one of the most important events of the year, with the potential to sway market sentiment and trigger volatility across various sectors.
Note: Market data, stock price as on Aug 28, 2024 12:08 PM ET