Nasdaq NVDA Nvidia

U.S. stock index futures climbed on Wednesday, with the spotlight firmly on Nvidia quarterly results due later in the day that could potentially reignite an artificial intelligence-fuelled rally in megacap growth stocks this year.

September Nasdaq 100 E-Mini futures (NQU23) are trending up +0.63% this morning as market participants awaited crucial quarterly results from industry stalwarts Nvidia and Analog Devices while also gearing up for U.S. business activity data.

Weak European economic data sent the euro lower and sparked a bounce in bond and share markets on Wednesday, as investors also awaited results from tech darling Nvidia later to see if the sector's lofty valuations still look justified.

Nvidia (NASDAQ: NVDA) stock is seeing a massive artificial intelligence (AI)-fueled surge in 2023, rising 212% so far thanks to the critical role the company's graphics cards and processors play in training AI models and running inferencing applications.

For Immediate ReleaseChicago, IL – August 23, 2023 – Today, Zacks Investment Ideas feature highlights Nvidia NVDA, Microsoft MSFT, Alphabet GOOGL, Baidu BIDU and Advanced Micro Devices AMD.

Snowflake ( NYSE:SNOW ) is set to release its second quarter Fiscal 2024 results on August 23, after the market closes. Snowflake has consistently outpaced earnings expectations in the past eight quarters. It will be interesting to see if SNOW can continue its winning streak in the to-be-reported quarter despite a weaker economy. Two key points to monitor during the quarterly results are a slowdown in cloud spending and the company's previous decision to cut its revenue outlook for Fiscal 2024.   What to Expect from SNOW’s Q2 Results In Fiscal Q2 2024, the Street expects Snowflake to report adjusted earnings of $0.10 per share on revenues of $662.22 million. In the prior year period, SNOW posted adjusted earnings of $0.01 per share on revenues of $497.25 million. Snowflake offers a cloud-based data storage and analytics service. Its platform enables companies to consolidate, analyze, store, and share troves of data. Some of its largest business partners include big tech firms, namely Amazon ( NASDAQ:AMZN ), Microsoft ( NASDAQ:MSFT ), and Alphabet ( NASDAQ:GOOGL ). Further, Snowflake announced an extension of its partnership with Microsoft and committed to spending up to $2.5 billion on Amazon Web Services (AWS) over the next five years. Also, Snow will be helping Nvidia ( NASDAQ:NVDA ) in creating generative artificial intelligence (AI) software. All of these factors could contribute to Snowflake’s long-term progress. What Analysts are Saying About SNOW’s Q2 Results Ahead of Snowflake’s Q2 print, JMP Securities analyst Patrick Walravens maintained a Buy rating and price target of $200 (implying 31.7% upside potential) on SNOW stock. Walravens is impressed by Snowflake’s disruptive cloud data platform, which has a total addressable market of $250 billion. Plus, the company’s Snowpark is steadily attracting higher consumption, with 30% of clients using the service, up almost 70% quarter-over-quarter as of the most recent results. Also, the analyst believes that Snowflake is poised to benefit from the enterprise’s growing usage of AI. Similarly, analyst William Power of Robert W. Baird reiterated his Buy rating on SNOW stock with a price target of $200. Power is encouraged by Snowflake’s long-term growth potential, even though short-term uncertainties could impact the firm's performance. Also, the analyst noted that SNOW’s ability to manage large amounts of data on the cloud is commendable. Overall, Power expects optimization headwinds and stiff competition from hyperscalers as the two caveats to its earnings. Is SNOW a Good Stock to Buy, According to Analysts? Wall Street is currently cautiously optimistic about SNOW’s trajectory. On TipRanks, Snowflake stock has a Moderate Buy consensus rating based on 25 Buys, seven Holds, and one Sell rating. The average Snowflake price target of $189.83 implies 24.3% upside potential from current levels. Meanwhile, SNOW stock has gained 12.1% so far this year. Insights from Options Trading Activity TipRanks now presents options activity to help investors plan their trades ahead of earnings releases.  Options traders are pricing in SNOW stock to move by +/-11.8% after reporting earnings. Last quarter, the stock fell by 16.50% following the downward revision in Fiscal 2024 product revenues from the company. The anticipated earnings move is determined by computing the at-the-money straddle of the options closest to the expiration after the earnings announcement. Ending Thoughts Snowflake’s Q2 earnings could outperform market expectations based on its historical track record. Even so, short-term headwinds could continue to dampen the stock’s performance in the near term. Nonetheless, a high number of analysts remain bullish about Snowflake’s long-term trajectory. Disclosure

Chip giant Nvidia ( NASDAQ:NVDA ) is scheduled to announce its fiscal second-quarter results after the market close on Wednesday, August 23. NVDA shares have skyrocketed over 221% since the start of this year, as the company is being viewed as one of the biggest beneficiaries of the generative artificial intelligence (AI) wave. Most Wall Street analysts are upbeat about the company’s ability to beat Q2 FY24 estimates and the growth potential of its advanced chips and technology. A Look at NVDA’s Q2 Expectations Nvidia’s blockbuster fiscal first-quarter earnings report (ended April 30, 2023) in May drove a rally in the stock, as the company issued fiscal Q2 revenue guidance of $11 billion (plus or minus 2%), which was nearly $4 billion more than analysts’ consensus estimate. The company’s stellar Q2 FY24 outlook was driven by the solid demand for its data center family of products. Nvidia’s advanced graphics processing units (GPUs) are needed to power cloud computing and generative AI applications. Meanwhile, analysts expect Nvidia’s Q2 FY24 revenue to rise 65% year-over-year to $11.2 billion and adjusted EPS to jump to $2.08 from $0.51 in the prior-year quarter. On Monday, HSBC analyst Frank Lee increased his price target for Nvidia to $780 from $600 and reaffirmed a Buy rating on the stock. Lee raised his FY24 and FY25 AI server assumptions and believes that NVDA’s earnings upside potential is still not fully priced into the shares. He expects bullish AI server momentum to continue to surprise on the upside. Similarly, CFRA analyst Angelo Zino raised the price target for Nvidia to $500 from $480 on Monday and increased his EPS estimates for FY24 and FY25, while maintaining a Buy rating. Zino cited the company’s AI prospects as the reason for his higher price target. The analyst expects Q2 FY24 EPS of $2.09 on revenue of $11.1 billion. In particular, Zino expects Q2 revenue to be driven by a “greater appetite” for GPUs across the data center space, reflecting surging orders from cloud providers and pricing power for the company’s H100 chips. He also expects the gaming segment to return to year-over-year revenue growth after four quarters of declines. “We like NVDA's strong competitive moat on the software side,” said Zino. Zino thinks that management’s commentary highlighting software revenue potential and the outlook for the third quarter will be critical. He projects third-quarter EPS of $2.37 on sales of $11.1 billion, indicating sustained demand. Last week, Raymond James analyst Srini Pajjuri boosted his price target for Nvidia to $500 from $450 and reiterated a Buy rating. While estimates “aren’t exactly low” heading into the Q2 FY24 print, the analyst feels that a more modest beat-and-raise report relative to last quarter and talk of visibility extending into 2024 should keep the rise in NVDA stock going. Pajjuri increased his estimates, noting that GPU demand is significantly outpacing supply due to the AI spending boom despite mixed cloud capital spending trends. Is Nvidia a Buy or Hold? Ahead of Q2 FY24 earnings, Wall Street is highly bullish on Nvidia, with a Strong Buy consensus rating https://www.tipranks.com/stocks/nvda/forecastbased on 32 Buys and two Holds. The average price target of $532.98 implies 16.7% upside potential. Insights from Options Trading Activity TipRanks now presents options activity to help investors plan their trades ahead of earnings releases.  Options traders are pricing in a 10.97% move on Nvidia earnings. NVDA shares have averaged a 6.3% move in the last eight quarters. In particular, the stock rose 24.4% in reaction to the Q1 FY24 results. The anticipated move is determined by computing the at-the-money straddle of the options closest to the expiration after the earnings announcement. Conclusion Investors and analysts have high expectations from Nvidia’s fiscal second-quarter results due to demand for its AI chips. Nonetheless, the stock might decline if the company fails to meet the market’s expectations or issues lackluster guidance.   Disclosure

Asian markets were marking time on Wednesday as investors awaited results from tech darling Nvidia to see if the sector's lofty valuations can withstand a jump in bond yields, while still gloomy factory readings from Japan left sentiment fragile.

Bullish investors are hoping Wednesday's earnings report from chip heavyweight Nvidia can rejuvenate a U.S. stocks rally that has stumbled in recent weeks.

The surge in U.S. yields to 16-year highs has dominated the market's focus all week in the run-up to the Fed's closely watched Jackson Hole Symposium, which should set the tone for policy direction.

Asian shares held tight ranges on Wednesday as investors awaited results from tech darling Nvidia to see if the sector's lofty valuations can withstand a jump in bond yields, while still gloomy factory readings from Japan left sentiment fragile.

Monday put an end to the broader slide among tech stocks as the Nasdaq rose +1.56% with the index virtually flat in today’s trading session.

A scramble among Arm Holdings Ltd's clients, comprising the world's biggest technology companies, to snap up shares in its initial public offering (IPO) is testing the semiconductor designer's adherence to not picking sides in the chip industry.

Markets were once again mixed today, though toward lower levels than we’ve generally seen all week. The Dow shed another -167 points, -0.49%, while the Nasdaq rose marginally, +0.06%. The S&P 500 and the small-cap Russell 2000

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Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.

Nvidia (NVDA) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, NVDA broke out above the 50-day moving average, suggesting a short-term bullish trend.