Nvidia is set to report its earnings after the market closes on Wednesday, with analysts anticipating second-quarter sales exceeding $92 billion, as reported by FactSet. Cantor Fitzgerald has projected third-quarter sales expectations at $103.7 billion.
Despite Nvidia's history of surpassing earnings expectations, its stock has faced declines in the following trading days, as noted by Bespoke Data. A key concern for investors is Nvidia's heavy dependence on hyperscalers like Amazon, Google, and Microsoft, which has led to a 2.9% drop in Nvidia's shares on Monday, marking a seven-day losing streak, the longest since 2022.
However, shares rebounded slightly with a 2.2% increase on Tuesday. This earnings report is viewed by CNBC's Jim Cramer as a critical indicator for the entire AI sector, emphasizing the stakes involved for Nvidia and its investors