Nvidia in Focus: Earnings Exceed Expectations

Market leader Nvidia is once again in the spotlight as investors eagerly await the latest quarterly figures. According to Bloomberg data, the announcement of the results could lead to an 8% price movement in Nvidia stock. This could signify a massive change in the company's market capitalization: a gain or loss of $300 billion is possible, with the total valuation at $3.5 trillion as of Tuesday morning. Expectations are high, as analysts forecast a revenue jump to $33 billion for the third quarter – an impressive 83% increase compared to last year. Particular attention is on the assessment of the demand for "Blackwell," Nvidia's most advanced AI chip. CEO Jensen Huang described the demand for Blackwell in October as "crazy." A report from Wedbush Securities discusses the potential to exceed revenue forecasts by $2 billion, with a target market valuation of $4 trillion by 2025. The demand for cloud and AI, recently demonstrated by tech giants like Amazon, Google, and Microsoft, underscores the enormous growth potential in this sector. The introduction of the Blackwell GB200 GPU could dominate Nvidia's revenues in the coming years, suggests Louis Navellier of Navellier & Associates. With investments of about $2 billion in the development of these technologies, Nvidia currently stands without significant competition. However, despite strong figures, investors remain nervous. A decline in stock price following positive reports is not ruled out, as experience following the last quarterly report shows.