Nvidia’s upcoming Q2 results are ‘most important in years,’ Wedbush says

Nvidia (NASDAQ:NVDA) is slated to report fiscal second-quarter results on August 28 after the close of trading, and Wedbush Securities said the event is likely to be the “most important” in years for the technology sector.

“While the market and global economic direction is laser focused on Jackson Hole this week with the Fed and Powell beginning its path/communication to cut interest rates, we believe the most important week for the stock market this year and potentially in years for the Street will be next week as the Godfather of AI Jensen [Huang] and Nvidia have earnings on deck,” analyst Dan Ives wrote in an investor note.

For the actual print, Nvidia likely to have another “drop the mic performance,” Ives added, as he characterized the company as “the only game in town” when it comes to artificial intelligence and GPUs.

A consensus of analysts expects the company will earn $0.64 per share on $28.67B in revenue for the upcoming quarter.

“The cloud numbers and AI data points from [Microsoft], Amazon, and Google were very strong during earnings season the last few weeks as this indicates massive enterprise AI demand is now underway,” Ives explained.

For every $1 spent on an Nvidia GPU, the tech sector could reap between $8 and $10 in added benefit, Ives added.