Monday Market Rundown: What’s Next For Nvidia? - August 26th - August 30th

Earnings Reports:

Mon: PDD Holdings (PDD), BHP Group Limited (BHP), Trip.com Group Limited (TCOM), KT Corporation (KT), DAQO New Energy Corp. (DQ).

Tues: Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Heico Corporation (HELA), SentinelOne (S), PVH Corp (PVH).?

Wed: Nvidia (NVDA), Salesforce (CRM), Royal Bank of Canada (RY), CrowdStrike Holdings (CRWD), HP Inc. (HPQ), Veeva Systems (VEEV).?

Thurs: Dell Technologies (DELL), Marvell Technology (MRVL), Autodesk (ADSK), Canadian Imperial Bank of Commerce (CM), Lululemon Athletica (LULU), Dollar General (DG).?

Fri: Frontline PLC (FRO), Miniso Group Holding Limited (MNSO).

Economic Calendar:

Mon: Durable Goods Orders (MoM) (Jul), Atlanta fed GDPNow (Q3).

Tues: CB Consumer Confidence (Aug), API Weekly Crude Oil Stock, 2-Year Note Auction.

Wed: Crude Oil Inventories, 5-Year Note Auction, Fed Waller Speaks

Thurs: GDP (QoQ) (Q2), Initial Jobless Claims, Fed’s Balance Sheets, Core PCE Prices (Q2).?

Fri: Core PCE Price Index, Personal Spending, Chicago PMI (Aug), Michigan Consumer Expectations (Aug).?

Weekly Spotlight - What’s Next For Nvidia?

NVIDIA, a key player in the semiconductor industry, is poised for significant developments as it prepares to announce its second-quarter results for fiscal 2025. The company, known for its cutting-edge graphics processing units (GPUs), has seen substantial growth driven by the increasing demand for artificial intelligence (AI) and advanced computing technologies.

Analysts anticipate that NVIDIA's revenue will reach $28.84 billion, more than double what it earned in the same quarter last year. This remarkable growth is largely attributed to the surge in demand for AI capabilities, particularly in the data center segment. Data centers are essential infrastructures that house computing resources, including servers and storage systems, which support a wide range of applications from cloud services to AI training. NVIDIA’s GPUs, which are optimized for parallel processing, play a crucial role in these environments by accelerating complex computations needed for AI and machine learning tasks.

In the first quarter of fiscal 2025, NVIDIA reported $22.6 billion in revenue from its data center business, a record for the company. For the upcoming quarter, projections suggest this figure could rise to $25.19 billion, highlighting the growing reliance on NVIDIA’s technology to power AI-driven innovations across various industries.

Another significant development for NVIDIA is the introduction of its Blackwell GPU architecture. This new platform, named after the renowned mathematician David Harold Blackwell, is designed to handle the increasing complexity of AI models, particularly those involving trillions of parameters. Parameters in AI models are essentially the components that algorithms use to make predictions or decisions. As AI models grow in size and complexity, the computational power required to train and run them increases exponentially. Blackwell is engineered to meet these demands while also reducing operational costs and energy consumption, making it a highly efficient solution for AI applications.

Despite some reports of potential delays in the production of Blackwell, NVIDIA has assured the market that it remains on track for a timely release. The architecture is expected to be adopted by major technology companies, including Google, Amazon, and Microsoft, which underscores its significance in the AI landscape. These companies rely on powerful computing platforms to support a wide range of applications, from cloud computing to AI research, and Blackwell’s capabilities are expected to drive further advancements in these areas.

NVIDIA’s partnerships with these tech giants also reflect the strategic importance of the Blackwell platform in shaping the future of AI and computing. As industries increasingly turn to AI for solutions to complex problems, the need for advanced computational tools like those provided by NVIDIA becomes more critical. Blackwell, with its innovative design and efficiency, is set to play a pivotal role in enabling the next wave of technological breakthroughs, from quantum computing to generative AI and beyond.

As NVIDIA continues to innovate and expand its influence in the tech world, the upcoming months will be crucial in determining how these developments impact the broader industry and the future of computing.