Nvidia Results: Why Global Investors Are Eyeing the Quarterly Results of Wall Street's Beloved Stock?

Nvidia quarterly results: Wall Street's darling is once again making headlines as investors keenly watch out for the quarterly results of Nvidia. Global markets, although in the green territory, remained largely flat on Wednesday as caution around the AI space continues to linger. Nvidia's GPUs (graphics processing units) are among the key components used for training AI models and other large language models (LLMs).

During the last quarter, Nvidia reported a massive revenue figure of $26 billion, up by nearly 18 per cent from the previous quarter and a significant 262 per cent increase compared to the same period, last year.

From achieving a strong market capitalisation of $3.6 trillion to surpassing tech giants like Apple and Microsoft, Nvidia went on to become the most valuable company in the world earlier this year.

On year-to-date basis, the shares of the GPU manufacturer has delivered a return of 166 per cent on NASDAQ.

"With NVIDIA and AI becoming synonymous to each other, today’s July quarter result of the semiconductor behemoth is likely to have huge ramifications for the broader IT sector in the near term. Markets would closely track the company’s guidance, ramp-up of Blackwell GPU chips, end-user demand and its new product roadmap for further hints on the future performance trajectory," said Manish Chowdhury, Head of Research, StoxBox.

As per multiple reports, Goldman Sachs expects Nvidia's stock to swing by up to 9 per cent after its second-quarter earnings report. This could lead to a market value fluctuation of over $300 billion for Nvidia

However, the past quarter has witnessed a lot of scrutiny around AI and its future trajectory. Many analysts believe that the AI space demands massive capital in the present, which could impact their bottom-line as it may take a while for those investments to reflect in financial results.

For instance, earlier this year, Meta announced its plans to increase its AI investments significantly to $35-40 billion.

On top of it, the debate between open-source and close-source models is already heating up the AI game. Companies like Meta and Microsoft are inclined towards open-source AI. However, OpenAI and Apple are favouring closed-source models.

All these developments together, make the quarterly results of Nvidia a worth-watching event for investors as the bottom line figures of the company can silently impact the trajectory of global market mood.