Nvidia earnings are 'as important as ever,' strategist says
Nvidia (NVDA) is set to release quarterly results on Wednesday, February 26, after the closing bell. JonesTrading chief market strategist Michael O'Rourke joins Morning Brief Co-Hosts Seana Smith and Brad Smith to discuss the significance of the earnings report for the chipmaker and the broader market (^DJI, ^IXIC, ^GSPC). "Obviously, Nvidia has had one of the most remarkable ascents in the US stock market because its business has grown fundamentally that well and that strong from being a company that was doing $15 [billion to] $20 billion in revenue going to $120 billion in revenues in a matter of a couple of years," O'Rourke says, adding "That type of growth is really important going forward here." "Of course, those growth rates are going to moderate," the strategist says, noting that despite moderation growth, Nvidia is "the cornerstone of the AI trade." O'Rourke finds Nvidia to have been the "primary beneficiary" of the AI trade, as seen in their graphics processing unit (GPU) sales. "So again, it really is the pulse of where the growth is in the tech economy, which in a lot of cases is the US economy at this point, and especially where the stock market earnings are, and earnings growth is going forward," he tells Yahoo Finance, adding, "I think [Nvidia earnings are] as important as ever." Also catch Bahnsen Group CIO David Bahnsen explain his bear case on Nvidia to Yahoo Finance. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Naomi Buchanan.
