NVIDIA: World's most valuable company set to rock markets today! Here's why.

Markets tepid ahead of NVIDIA earnings

Risk assets remain on shaky ground, ahead of NVIDIA's highly-anticipated quarterly earnings announcement.

At the time of writing:

• Bybit's SP500 Index is keeping its head above the 6,600 mark, with the benchmark S&P 500 index having fallen for 4 straight days - its longest losing streak since August.

• Gold is rising slightly towards $4100, attempting to find a solid footing while sandwiched between its 9-day and 21-day SMAs (simple moving averages) at the time of writing.

• Bitcoin once again briefly dipped below $90k, slipping from yesterday's intraday high of $93,837.50, as the broader CoinDesk 20 Index slips below the psychological 3k mark once more.

Trade SP500, Gold, and more on Bybit MT5 using this link.



Nvidia earnings due after US markets close today (Wed, Nov 19)

Fears of an AI bubble have contributed to the recent slide in US stock markets.

Hence, the latest quarterly results out of the world's most valuable company, and AI poster child no less, may well dictate where US stock markets go from here.

Coming into this month, Nvidia became the first company to ever reach a market cap of US$ 5,000,000,000,000!

However, the market cap of this AI champion has since dropped down to US$ 4.4 trillion as of US market close on Nov 18, with the stock falling 12.4% from its record high on Oct 29..

Ahead of this pivotal announcement, the stock tested support at its 100-day simple moving average (SMA):



Get an in-depth, all-you-need-to-know preview of Nvidia's upcoming earnings @ 2:00 PM GMT today (Wed, Nov 19) in Bybit Learn's "Daily Market Update" livestream - on YouTube and X - with Chief Market Analyst, Han Tan.



Nvidia Earnings: 3 things to look out for



1) Fiscal Q3 earnings growth Analysts currently expect:

• Revenue: 57% year-on-year growth to US$55.2 billion

• Net Income: 56% year-on-year growth to US$30.9 billion

• Earnings per share (EPS): 60.9% year-on-year growth to $1.26

A miss on any of these headline numbers may sink Nvidia's stocks further, pending what Nvidia conveys about the next two points ...



2) US$500 billion outlook

Nvidia CEO Jensen Huang recently said he expects half-a-trillion dollars in revenue over the next few quarters, thanks to heavy AI capex spending from the likes of Microsoft, Amazon, Alphabet, and Meta - these 4 Big Tech companies account for over 40% of Nvidia's sales.

Can such heavy spending be sustained? Or would Big Tech have to rein in AI spend eventually?



3) AI bubble: real risk or misplaced fears?

There have been questions and criticisms aplenty over the "flywheel" nature of recent mega AI deals - where massive investments from the likes of Nvidia and OpenAI are being questioned for artificially inflating the AI boom.

Microsoft, Amazon, Alphabet, and Meta are forecasted to increase their AI spending collectively by a further 34% over the net 12 months to US$440 billion, according to Bloomberg data.

Ultimately, will all this AI spending pay off?



The market's reactions to these 3 crucial points are bound to sway the share prices of the world's most valuable company.

Markets currently predict that Nvidia's shares could move 6.94% up/down after the earnings.

If so, that should translate into some US$ 300 billion either being added or shaved off Nvidia's market cap.

Such a potentially massive repricing is likely to reverberate across broader US stock markets, potentially also across global equities as well.

Bybit's SP500 and NAS100 Indices to react to NVIDIA earnings

NVIDIA's sheer size of US$ 4.4 trillion ensures it has massive influence over major US stock indices:

• NVIDIA alone accounts for 7.8% of the benchmark S&P 500 index, tracked by Bybit's SP500.

• NVIDIA also accounts for 9.9% of the tech-heavy Nasdaq 100 index, tracked by Bybit's NAS100.

All that means is, the market's reactions to Nvidia's earnings announcement are bound to sway the broader SP500 and NAS100 as well, given Nvidia's sheer size and weight on these benchmark indices.



Trade Nvidia, SP500, NAS100, and more (almost) 24/5 on Bybit MT5 using this link.