The American chip manufacturer Nvidia is the last of the tech giants to deliver a quarterly report. Expectations are for a profit increase of around 45 percent compared to the same quarter last year.
For Nvidia, it is important to beat the estimates when it comes to revenue and profits. I think anything else would be a disappointment, says Landeborn.
Nvidia is the world's largest company in terms of market value. In July, the company became the first in the world to be valued at over 4,000 billion dollars.
Future prospects are important
Despite high expectations, the company has long delivered reports that are both better than their own forecasts and analysts' expectations. But the focus is not primarily on the past quarter. The company's sales forecast for the next quarter weighs heavily, where they hope for continued high growth and strong demand for Nvidia's products. CEO Jensen Huang is usually good at setting high expectations, according to Landeborn.
But on the other hand, they have also been good at delivering what they say they will do.
A clue ahead of Nvidia's report is the customers' next move. Among the customers are tech giants Amazon, Alphabet, Microsoft, and Meta – who have already released reports. And they have said that they will make even larger AI investments going forward.
Then Nvidia's products are central to that development, says Landeborn.
Affects Swedish savers
Landeborn points out that Nvidia is a thermometer for interest in investments in data centers and AI. If interest decreases or the positive effects fail to materialize, it affects the mood of the entire market, she believes. The company weighs heavily in both an American and global index – where Nvidia is just over five percent in the latter. It also affects Swedish savers.
If you save in a global fund, a twentieth of your money is invested in Nvidia.
The Nvidia share has increased in popularity among Nordnet's customers. In the spring, many customers scaled down their holdings in American shares – but not in Nvidia, where the number of owners has increased by 20 percent this year. Now, the number of owners in Nvidia on Nordnet's platform amounts to around 87,000, the corresponding figure at Avanza is 96,000.
Nvidia will release its report for the second quarter on August 27.
