Tuesday 15 October 2024
26 August Week Ahead: NVIDIA Earnings, US Data & More
On the week of 26 August 2024, earnings from leading companies, including NVIDIA (NVDA), key inflation data from the world’s biggest economies, and important US election developments are scheduled to take place.
Let’s take a closer look at this week's upcoming economic events and key market highlights:
NVIDIA’s Earnings: What’s Next for the AI Giant?
This week’s earnings report from NVIDIA on Wednesday, 28 August, is perhaps one of the most expected releases, especially given the company’s meteoric rise of about 168.3% since the start of the year. Among the plethora of factors that have given the company its rise is a boost in AI demand.
According to analysts like John Vinh, NVIDIA is expected to “report beat/raise results, in which upside will be driven by strong demand for Hopper GPUs.” Other experts like Eric Jackson believe that the company “could double again between now and the end of the year.” In other words, this bullish projection would see NVIDIA’s market cap hitting $6 trillion by year-end (from the current $3.2 trillion).
Here are the key projections from Wall Street analysts:
Quarterly earnings: Expected at $0.63 per share, a 133.3% year-over-year increase. Revenues: Anticipated to hit $28.24 billion, a 109% rise from the previous year.
To be specific, Revenue segmentation is projected as follows:
Gaming: $2.79 billion (12.3% YoY increase).
Professional Visualisation: $446.57 million (17.8% YoY increase).
Automotive: $346.28 million (36.9% YoY increase).
OEM and Other: $79.68 million (20.7% YoY increase).
Data Center: $24.60 billion (138.3% YoY increase).
Investors may also want to consider the latest earnings from NVIDIA’s competitors and other leading AI firms to gauge potential outcomes for NVIDIA’s report:
Taiwan Semicondutor (TSM) reported stronger AI demand.
Super Micro Computer (SMCI) reported stronger demand for liquid cooling solutions.
Meta (META) increased 2024-2025 capital expenditures by millions.
AMD (AMD), which recently announced the purchase of ZT Systems and upgraded its sales for data center chips (for the third time in 2024).
Despite NVIDIA’s current dominance, increased competition may pose challenges. Time will reveal how this tech giant will navigate the evolving landscape.
More Earnings
Moreover, aside from NVIDIA, traders may want to keep tabs on this week’s reports from the following companies:
Key Economic Data
Economic data to watch includes:
Consumer Confidence on Tuesday, 27 August
Initial Jobless Claims, GDP, pending home sales, and retail inventories on Thursday, 29 August.
Personal Consumption Expenditures and Consumer Sentiment on Friday, 30 August.
These reports will offer valuable insights into the state of the US economy.
In addition to the US data, monitor inflation reports from Australia and the Eurozone on Wednesday and Friday, respectively.
US Elections Update
The US election campaign continues to heat up this week. On Monday, August 26, Donald Trump will address the National Guard Association of the United States in Detroit and discuss topics such as consumer price inflation, the US economy, and manufacturing. He will also hold a rally in Pennsylvania on Friday. His running mate, Ohio Senator JD Vance, will rally in Michigan on Tuesday. Kamala Harris and her running mate, Minnesota Governor Tim Walz, will tour Georgia on Wednesday and Thursday following a successful week where Harris’s campaign reportedly raised $82 million.
The upcoming rallies and speeches could impact the US markets and the global economy as we approach the end of August.
