Nvidia, a key player in the graphics processing unit (GPU) market and a leader in artificial intelligence technology, is set to announce its earnings after the market closes on Wednesday. According to consensus estimates from LSEG, analysts anticipate that Nvidia will report earnings of $1.25 per share, signifying a remarkable 54% increase year-over-year. Furthermore, projected revenue stands at $55 billion, indicating a robust 57% increase compared to the same period last year. If Nvidia meets or exceeds these expectations, the company’s stock valuation and market capitalization are likely to rise.
In addition to Nvidia, several other companies are showing correlations to its performance. Among these, Taiwan Semiconductor Manufacturing (TSMC) stands out with a 57% correlation rate over the past 60 days. This stock has seen a substantial rise of 41% this year. Bank of America recently reaffirmed its buy rating on TSMC, increasing the price target to $390, suggesting an impressive potential upside of 38%. Analyst Haas Liu emphasized TSMC’s strategic role as an “underappreciated proxy for the secular AI growth trend,” urging investors to consider its potential in light of ongoing technological advancements.
Super Micro Computer is another company closely related to Nvidia’s performance, exhibiting a 55% correlation over the same period. This server manufacturing company has gained 15% in value this year, and Argus recently upgraded its rating from hold to buy, establishing a 12-month price target of $64 per share, which implies a significant upside of 88%. Analyst Jim Kelleher noted that existing concerns about the company’s revenue delivery and margin performance are already reflected in its share price, suggesting that the stock is currently undervalued given its growth prospects.
As Nvidia prepares for its earnings report, the anticipation surrounding the company’s results may contribute positively not only to its own stock but also to those of closely-linked firms like TSMC and Super Micro Computer. The overall sentiment in the market suggests optimism for substantial growth in the tech sector, particularly as companies capitalize on the rising demand for AI and advanced computing solutions.