NVIDIA $NDVA to Lift Wall Street

With almost all S&P 500 members reporting their earnings, one large report has been hanging: Nvidia.

With its earnings release back in May 2023, the chip giant turbocharged an AI-driven stock market surge, therefore expectations for Jensen Huang's company are skyrocketing as has been the case since.

With revenue also rising 99% compared to the same quarter a year earlier, Wall Street estimates Nvidia to have grown earnings by around 109% year over year. Especially important will be updates on any possible delays for Nvidia's new Blackwell chip.

There is good reason for the bullishness based on a host of recent signals from earnings reports:

Taiwan Semiconductor (TSM) just cited strong AI demand when it reported.

AMD (AMD) recently lifted its sales for data center chips for the third time in a year.

Super Micro Computer (SMCI) cited strong demand for its liquid cooling solutions.

Nvidia chip customer Meta (META) just raised its capital expenditures guidance for 2024 and 2025 by billions.

And given Nvidia's very complex business, its tale is shockingly simple to understand. Among the artificial intelligence chips available today, Nvidia produces the best ones. basic. Regarding artificial intelligence processor performance and forward-looking demand, nobody even approaches Nvidia.

Weekly Calendar

Monday

Economic data: Durable goods orders, July preliminary (+4.2% expected, -6.7% previously); Dallas Fed manufacturing activity, August (-16 expected, -17.5 previously)

Earnings: Trip.com (TCOM)

Tuesday

Economic data: Conference Board Consumer Confidence, August (100.1 expected, 100.3 previously); S&P CoreLogic Case-Shiller, 20-City Composite home price index, month-over-month, June (+0.3% expected, +0.34% previously); S&P CoreLogic Case-Shiller 20-City Composite home price index, year-over-year, June (+6.81% previously); Richmond Fed manufacturing index, August (-17 previously)

Earnings: Bank of Montreal (BMO), Box (BOX), Nordstrom (JWN)

Wednesday

Economic data: MBA Mortgage Applications, week ending Aug. 23 (-10.1% prior)

Earnings: Nvidia (NVDA), Abercrombie & Fitch (ANF), Affirm (AFRM), Bath & Body Works (BBWI), CrowdStrike (CRWD), Chewy (CHWY), Foot Locker (FL), Five Below (FIVE), HP (HPQ), Kohl's (KSS), Okta (OKTA), RBC (RBC), Salesforce (CRM), The J.M. Smucker Company (SJM)

Thursday

Economic data: Initial jobless claims, week ended Aug. 24 (235,000 expected, 232,000 previously); Personal income, month-over-month, January (+0.5% expected, +0.3% previously); Second quarter GDP, second estimate (+2.8% expected, +2.8% prior); Wholesale inventories, month-over-month, July preliminary (+0.2% prior); Pending home sales, month-over-month, July (+0.4% expected, +4.8% prior)

Earnings: American Eagle Outfitters (AEO), Best Buy (BBY), Birkenstock (BIRK), Burlington Stores (BURL), Campbell's (CPB), Dell (DELL), Dollar General (DG), Gap (GAP), Lululemon (LULU), Marvell Technology (MRVL), MongoDB (MDB), Ulta Beauty (ULTA)

Friday

Economic news: Personal spending, month-over-month, July (+0.5% expected, +0.3% previously); PCE inflation, month-over-month, July (+0.2% expected, +0.1% previously); PCE inflation, year-over-year, July (+2.6% expected, +2.5% previously); "Core" PCE, month-over-month, July (+0.2% expected, +0.2% previously); "Core" PCE, year-over-year, July (+2.7% expected; +2.6% previously); MNI Chicago PMI, August (44.5 expected, 45.3 prior); University of Mich. consumer sentiment, August final (67.9 expected, 67.8 prior)

Earnings: No notable earnings.

Shayne Heffernan