Nvidia Corporation (NASDAQ:NVDA) is poised to announce its second-quarter financial results on Wednesday, with projections indicating that the company’s revenue may have more than doubled compared to the same period last year.
However, investors accustomed to Nvidia's remarkable performance are looking for more than just positive figures; they are seeking signs of sustained growth that could either fuel or diminish the ongoing rally in artificial intelligence (AI) stocks.
The AI chip giant's earnings report for the May-July period is expected to significantly influence market sentiment on Thursday.
With Nvidia's shares already having surged over 150% this year, the company has added a staggering $1.82 trillion to its market value, propelling the S&P 500 to new heights.
Nvidia's stock is currently valued at approximately 37 times its forward earnings, a premium compared to the average multiple of around 29 for the top six tech companies in the benchmark index.
The upcoming earnings report is critical, as it could determine whether Nvidia continues to lead the AI rally or faces a potential setback.
As of the time of writing this report, Nvidia's share price was $129.37, up 4.5% in pre-market trading.