More than 90% of the S&P 500 has now reported this earnings season, delivering stronger-than-expected earnings which have excited investors and led to a flurry of upgrades on the index. But as far as traders are concerned, it all led up to today.
Traders small and large have been waiting all earnings season for a glimpse into the financials of the world's most valuable company, chip giant Nvidia. After the market closes today, investors will finally get a look, drilling into the company's latest quarters for clues on the trajectory of the AI boom.
Wednesday Reading:
Since Nvidia's last blockbuster report, AI optimism has tapered. You wouldn't know that on Wall Street, though. While industry leaders have been throwing the B word around ("bubble"), analysts polled by Bloomberg are looking for earnings per share of $1.01 on $46.2 billion in revenue today. That would put year-over-year growth at 49% and 53% respectively.
Of course, a lot is riding on hitting those numbers. Options are pointing to a $260 billion price swing on the earnings release. And aside from being the world's most valuable company, Nvidia is the largest component of the S&P 500 (at 7.64% of the index) and Nasdaq-100 (14.43%). It's also the 19th-largest component in the 30-strong Dow Jones Industrial Average. That means there's a lot riding on its results. Not just for AI, but for the market at large.
-- Noah Weidner, markets reporter
