There was a three-day delay in further rallying on Wall Street, soon after the spectacular run-up due to the Federal Reserve (Fed) rate cut pledges at Jackson Hole, and with a new all-time record for the major S&P 500 broad index. It is now approaching the next milestone of 6,500 points. The coming night August 27-28, may become one more boosting moment for the U.S. stocks, especially its AI and cloud tech segment. The reason lies, of course, in the release of long-awaited quarterly earnings from Nvidia giant.
Most likely, the figures and forward guidance projections for the rest of 2025 will again be crushing for the sceptics camp to support trend-following investors like most of us. Nvidia's EPS (equity per share) earnings have never crossed the special barrier of $1 per share before, but that is what the consensus expectation is, with the previous record of $0.9 in Q4 2024 and $0.76 being released in the previous quarterly period. Quarterly revenue last year was $30 billion at the end of August, then $35 billion in November, $39.3 billion in February and $44.06 billion quarterly in May, and now the expert pool is aiming for $45.8 billion. We will see what numbers will come out today. But even if something goes a little unravelled in the specific numbers for the previous three months, so that some values in the lower or upper lines would not hit high enough compared to already inflated bets of the radical optimists among experts, any potential decline in NVDIA quotes would be very reasonable to buy more of Nvidia shares, without putting it off for a long time. In no later than a couple of days or early next week, if not immediately, new stock purchases will be an even better investment than what can be done at current prices just above $180 per share.
At the same time, the chances of showing new peak price values following the report this night appears to be much higher than the possibility of a temporary, and conditionally safe, drawdown. Therefore, it makes sense to keep positions in Nvidia open. One can’t go totally wrong here: either investors win right away, also well protected from being outside the growing-again market, or one would be exposed to a limited risk with a clear prospect of new profits just around the corner. Thus, it would also be prudent to leave some capital free for possible additional purchases at a lower price. So that if a lower price would be granted by doubting markets, there would also be enough money to grab it with.
Let's not forget that Nvidia has been the most powerful market flagship for at least two years and a half. It is the only business with more than $4 trillion in capitalization now, since it absolutely dominates the generative AI chip industry with a share of more than 80% globally. Therefore, it is the market-defining stock. Nvidia is that very feeding trough that not only gives the investment community with money directly from winnings in its own share prices, but also feeds the rest of the tech sector by being a key pillar of Wall Street growth. Thus, markets desperately needs to see Nvidia dynamics for cues.
