Nvidia, a leading technology company, is positioned to become a central player in the burgeoning artificial intelligence (AI) ecosystem, similar to Amazon’s dominant role in e-commerce, according to Kevin Mahn, CIO of Hennion & Walsh. This prediction comes as Nvidia is set to release its second-quarter earnings report on Wednesday, with expectations of exceeding forecasts.
Analysts are particularly optimistic about Nvidia’s data center business, anticipating significant growth in this sector. Mahn, in an interview with Yahoo Finance, highlighted Nvidia’s strategic positioning as the hub of the AI ecosystem, akin to Amazon’s dominance in the e-commerce landscape.
While Nvidia is the primary focus, Mahn also mentioned other promising investment opportunities, including Digital Realty Trust, Modine Manufacturing, and Broadcom.
The upcoming earnings report from Nvidia is highly anticipated, with analysts expecting a remarkable revenue surge. Benzinga Pro forecasts a second-quarter revenue of $28.68 billion, a significant increase from the $13.5 billion reported in the same quarter last year. This would mark the seventh time in the last eight quarters that Nvidia has exceeded revenue estimates.
Technical indicators suggest bullish momentum for Nvidia stock leading up to the earnings report, with the stock experiencing a surge of approximately 170% over the past year and about 163% year-to-date. However, some experts, like Gene Munster, managing partner at Deepwater Asset Management, caution that hyper-focused investors might trigger a negative stock trend after the earnings release. Munster raises concerns about potential short-term setbacks due to ongoing demand-supply imbalances and possible delays in the Blackwell project.
Despite these concerns, Carter Braxton Worth, founder of Worth Charting LLC, maintains a bullish outlook on Nvidia. He advises investors to adopt a long-term perspective, particularly around the earnings period. Worth emphasizes that technical indicators point toward continued upward momentum for Nvidia.
Nvidia’s stock closed at $128.30 on Tuesday, reflecting a 1.46% increase. The stock experienced a slight dip of 0.46% in after-hours trading. Year-to-date, NVIDIA’s stock has soared by a remarkable 166.35%, according to Benzinga Pro data.
