That is according to Nigel Green, CEO and Founder of deVere Group, in what’s dubbed as the “single most important earnings report of the year”.
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Nvidia’s stock has skyrocketed by 150% this year alone, with a 3,000% surge over the past five years.
Current shipment issues are not expected to hamper Nvidia’s results and Green believes the company’s GPUs, particularly its Hopper architecture are driving massive demand, with no clear competitor in sight.
“The result? A stratospheric rise in Nvidia’s stock and market cap that has far outpaced broader market gains.”
He said: “The company has become the undisputed leader in artificial intelligence (AI) chips, a market segment that is poised to reshape industries across the globe. In a world increasingly dominated by AI-driven technologies, Nvidia stands head and shoulders above the competition.
The earnings report later today will come after markets close and could be a defining moment for the US markets.
“With Nvidia accounting for roughly a quarter of the S&P 500’s 17% gain year-to-date, all eyes are on whether the AI darling can continue its impressive streak,” notes the deVere Group CEO.
“We believe Nvidia will deliver stellar results, outperforming both earnings expectations and forward guidance.”
Furthermore, Nvidia’s key customer Meta Platforms (META) has just raised its capital expenditure guidance by billions in the coming years, signalling confidence in the long-term demand for Nvidia’s AI chips.
While some sceptics argue that Nvidia’s gains will inevitably cool amid reported shipment delays for its new AI chip, Blackwell, deVere notes that these worries are overblown.
“Nvidia’s leadership in AI chips isn’t just about today’s product lineup; it’s about the company’s unmatched ability to innovate and anticipate future needs in an AI-dominated world.”
The deVere CEO concludes: “Nvidia’s upcoming earnings report will be a crucial test for the broader market’s AI-driven rally, but the signs point toward another strong showing.
“Expect Nvidia to not only meet but exceed expectations this week.”
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