Wall Street Awaits Nvidia’s Financial Reports

Wall Street is anxiously waiting for the financial reports of the largest artificial intelligence star, Nvidia, which are set to be released next week. The results may indicate whether the rapid growth of the capital market is justified, and investors are pondering their next move regarding interest rates. Nvidia, which gained around 250% last year, is expected to achieve high results in the fourth quarter, contributing to its position as the fourth-largest public company in the United States.

The company expects annual revenue growth of 118% to $59.04 billion in the fourth quarter, mainly due to demand for its AI-related server chipsets. However, failure to meet expectations could impact not only Nvidia but also the entire market. For investors, the stakes are high, and failure could lead to a decrease in the value of stocks and a general market sentiment decline.

In addition, the minutes from the latest Federal Reserve meeting will also be released next week, gaining more significance after reports showed a further deviation of the central bank from the 2% inflation target. If the minutes indicate a negative stance towards the policy, hopes for an interest rate cut will be dispelled sooner than later.

In the current situation of high interest rates, many investors are concerned about the stock market, especially for large-cap digital giants that have ridiculously high valuations. Geopolitical factors and uncertainty related to this year’s elections in the United States are also factors that may limit market growth. Recommendations from Wall Street strategists indicate an increase in the S&P 500 index this year, but in reality, the index has already exceeded this forecast, raising concerns about further market declines.

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The source of the article is from the blog smartphonemagazine.nl