One of the most valuable companies in the world, NVIDIA Corporation NVDA could serve as a leading market indicator for the technology and semiconductor sector if The company will announce its second quarter financial results on Wednesday, August 28, after the market closes.

Earnings estimates: According to data from Benzinga Pro, analysts expect Nvidia to report second-quarter revenue of $28.68 billion.

The company reported revenue of $13.5 billion in the second quarter of last year. Nvidia has beaten analysts’ revenue estimates in seven consecutive quarters and nine of the last 10 quarters.

Analysts expect the company to report earnings per share of 64 cents in the second quarter, compared to 27 cents per share in the second quarter of last year. The company has beaten earnings estimates in six consecutive quarters and in eight of the last 10 quarters.

The company’s guidance calls for second quarter revenue of $28.0 billion, plus or minus 2%.

The earnings report includes a 166% year-to-date increase in Nvidia shares in 2024, as shown in the Benzinga Pro chart below.

Also read: Nvidia stock and semiconductor sector split into AI winners and losers: Analyst says: “Stick with AI first and foremost”

What analysts say: Nvidia is expecting to exceed analyst estimates and increase forecasts. WestPark Capital analyst Garrigan, you are my friend.

The analyst reiterated his buy rating and price target of USD 127.50 ahead of the earnings release.

“Revenue will be driven by sequential growth across all end markets, with the data center end market driving revenue growth,” Garrigan said.

The analyst said demand for Hopper appears strong based on data points from cloud customers and the AI ​​supply chain.

The analyst believes that a delay in Blackwell GPUs will not impact Q2 or Q3. He also believes that Hopper GPUs will help fill the gap in Q4.

“We believe the AI ​​cycle is far from over and Nvidia is in a great position to continue to benefit. We continue to view Nvidia as an industry leader in AI and accelerated computing, with a first-mover advantage and wide moats of protection.”

The analyst said any decline in Nvidia shares after the earnings release could be a buying opportunity for investors.

Nvidia is seeing an improvement in fundamental and sentiment factors ahead of its earnings report. Treist analyst William Stone says a new investor communication.

The analyst reiterated his buy rating and raised the price target from $140 to $145.

“In the lead-up to NVDA’s CQ2, our regular dialogue with component buyers and sellers reflected the continued improvement in NVDA’s business trends,” said Stein.

Stein said data on AI investment and adoption led to a hike in estimates ahead of earnings reporting.

The analyst does not believe that there will be any delays at Blackwell and that the order situation has improved.

Nvidia will not be able to keep up with year-on-year growth of over 250 percent in the future, the analyst warned.

“We are convinced that there are good reasons for continued rapid growth in the coming years.”

The analyst said companies will continue to invest in artificial intelligence, which will continue to benefit Nvidia.

Important points to pay attention to: All eyes will be on the company’s key sales and earnings per share figures as well as its forecasts.

Investors and analysts will also be paying attention to how the Data Center segment performs. Revenue in the Data Center segment increased 427% year over year in the first quarter and continues to be a high-growth area for the company.

Since Nvidia is one of the largest companies in the world and plays a key role in many stock indices, the reaction to Nvidia’s end-of-week earnings report could have a ripple effect on the market.

Freedom capital markets Chief Strategist for Global Strategy Jay Woods recently emphasized the importance of Nvidia’s earnings report in an interview on Benzinga’s “PreMarket Prep.”

Woods said Nvidia could lift many boats depending on how investors react to the earnings. A rebalancing in a large technology ETF has made Nvidia more important than Apple, Woods added.

Although Woods is cautious about Nvidia’s momentum ahead of its second-quarter results, he still believes the stock is one of the best long-term investments.

“My best idea would be to just buy Nvidia, put it away and never look at it again.”

CEO of Nvidia Jensen Huang highlighted the company’s opportunities in several high-growth areas in the company’s first-quarter earnings report.

“The next industrial revolution has begun – companies and countries are working with Nvidia to transform traditional trillion-dollar data centers to accelerated computing and build a new kind of data centers – AI factories – to produce a new product: artificial intelligence,” Huang said.

Huang said AI will bring productivity gains to “almost every industry.”

Huang’s comments on demand and use cases could keep the AI ​​investment theme top of mind for investors.

NVDA price promotion: Nvidia shares are trading at $128.47 on Tuesday, compared with a 52-week trading range of $39.23 to $140.76.

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