Nvidia (NVDA) is scheduled to report second-quarter earnings on Wednesday afternoon, and Wall Street will be closely watching the results given the company’s stock’s outsized role in the recent bull market.
Kate Elhilou, president and chief investment officer at Russell Investments, joins Morning Brief to share her thoughts on how NVIDIA’s earnings will impact the markets.
Elhilou said AI’s impact will reach beyond big tech companies: “AI is being applied in many different sectors. It’s really starting to be applied in the consumer sector and in the services sector. Compared to the hardware investments in historical capital expenditures, AI will take longer to bear fruit, but it’s not priced in yet. So we see more opportunity for AI.”
If Nvidia’s earnings beat expectations, Elhilou believes, “it increases the conviction for expansion. If we see that spending is still happening from a capex standpoint and that there are people trying to build the infrastructure for this, it increases the conviction that the only reason they’re doing that is because they see an opportunity in that the buyer side is starting to invest more. So I think that’s ultimately going to be the next boost to expansion in the stock price upside.”
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This post was written by Nicholas Giacobino