Nvidia reports second-quarter results Wednesday, and CNBC's Jim Cramer says the print now works as a referendum on the entire AI trade. Analysts polled by FactSet expect $2.09 per share on $92.28 billion in revenue, with the chipmaker's valuation already past $5 trillion.
Jim Cramer told viewers Tuesday that Nvidia now sits at the center of the AI ecosystem, making its earnings report a referendum on the broader AI trade. He said headwinds including competitive pressure, data-center pushback, memory supply constraints, and questions about AI funding have not shaken his confidence in the company.
Nvidia's $5 trillion weight on the market
Nvidia is scheduled to report its second-quarter results after the closing bell Wednesday, alongside Salesforce and CrowdStrike. The company's valuation has crossed the $5 trillion threshold, making it the top constituent in the S&P 500, and investors are watching the quarterly figures for clues about the direction of equities more broadly.
Analysts polled by FactSet forecast Nvidia will post $2.09 per share in earnings on revenue of $92.28 billion.
Inflation data and Fed remarks add to the week
Wednesday also brings the release of July's personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, at 8:30 a.m. ET. Economists expect a 0.1% rise month-over-month and a 3.6% year-over-year increase for July.
Investors are also watching Federal Reserve Chair Kevin Warsh's speech Friday at the central bank's annual symposium in Jackson Hole, Wyoming. Piper Sandler's head of central bank policy, Kurt Lewis, said in a note to clients that he expects Warsh to focus on high-level economic topics rather than offer concrete guidance on interest rates.
Source: Quartz
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