NVIDIA stocks have increased market profits in the last two years, but in recent weeks the shares have stumbled.
Investors were worried about the cost of artificial intelligence and the overall economic background, taking into account possible import rates.
In its income report, NVIDIA can offer convincing clues about what awaits.
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All eyes are turned on Nvidia (NASDAQ: NVDA) Today when they are about to report earnings. Why is the report so big? For a couple of reasons. NVIDIA dominates an area that has increased the stock market over the last two years, and investors are looking for clear signals for what awaits. I am talking about artificial intelligence (AI) – a technology that some say they could become different online or by phone from innovation perspective.
NVIDIA is the leading AI chip manufacturer in the world, the tools that feed on this revolution. Thus, all Nvidia words can set a ton not only for this AI giant but also for other companies operating in space.
In addition, this latest earnings report can be very important as it is determined by the recent challenges, starting with the President’s Trump import tariffs to the export of chips to China. These elements weighed NVIDIA reserves and decreased by as much as 29%from the beginning of April to the beginning of April. Since then, the shares have caught the fact that import rates will not be as difficult as it is initially planned, and NVIDIA stocks will decrease by approximately 2% from 23 May.
Now let’s think about what to look at during this upcoming great moment NVIDIA and investors.
Image Source: Getty Images.
First, it is important to note that NVIDIA has identified many analysts’ income estimates, so investors want to find out if it continues, especially when the company is still at the start of its Blackwell architecture. The introduction of new products is a precious time, so investors want to know if NVIDIA has been able to maintain the overall margin in the low range of 70%, taking into account previous forecasts. This would show high sales profitability.
NVIDIA customers, out Meta platforms to AlphabetIn their latest earnings reports, they offered us bright news, saying that they are following their capital costs of the year. Meta even increased its expenditure forecast. Now that NVIDIA is announcing, it is very important to listen to related comments about demand to confirm that these spending plans will actually be useful in NVIDIA. These customers are likely to continue to invest in NVIDIA products and services, but there are competitors, and NVIDIA customers may even be considered competitors as some have created their own chips.
Another thing to observe is any commentary on export to China. Earlier, Nvidia said it would take a $ 5.5 billion dollars in a quarter of a H20 chip designed by the Chinese market. Recently, the US has suspended the sales of this product to say that NVIDIA needs an export license.
Meanwhile, in press reports, NVIDIA is considering other ways to maintain its presence in the Chinese market, which accounted for 13% of sales in the last fiscal year. For example, Nvidia plans to start new Chinese chips and can start mass production next month, Reuters said by quoting sources familiar with the project.
Finally, NVIDIA, which announced a new investment in the US a few weeks ago, can offer more information about these efforts. Trump tariffs are not yet subject to electronics, but the president said he was planning to determine duties for this type of product. NVIDIA has usually relied on production in Taiwan, but now it is reaching more and more of this house. It will be important to see how these movements affect the structure of the NVIDIA cost and whether any effect will be felt in the near future or further. NVIDIA stated that two US units should start installing up to 15 months a year.
NVIDIA has proven that the technology industry is a belfry, so the company’s income report could offer not only its shares but also other technology players. Although this earnings report is a big moment, investors should remember that it still offers a short -term picture of both NVIDIA and the AI market environment. And it means whether NVIDIA is surprised by the upside down or not, you can win by holding this highest AI player and other quality technology stock over a long period of time.
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Suzanne Frey, Alfabet executive, is a member of the Board of Motley Fool. Randi Zuckerberg, former Market Development Director and Facebook spokeswoman and Sister Meta Platforms CEO, Mark Zuckerberg, is a member of the Board of Motley Fool. Adria Cimino has no position in any of the above shares. The Motley fool is a position and recommends the alphabet, throw platforms and nvidia. The Motley fool has a disclosure policy.
A great moment of Nvidia is just ahead. Here’s what to watch. initially released by The Motley Fool
