As Wall Street Braces For 'Major Beat-And-Raise Special' From Nvidia Again, Tech Analyst Singles Out Key Metric To Watch: 'AI Party Is Just Getting Started'
Portfolio Pulse from Shanthi Rexaline
Ahead of Nvidia's earnings report, Wedbush analyst Daniel Ives highlighted the importance of Nvidia's role in the AI revolution, emphasizing the anticipation for a 'major beat-and-raise' special. Ives pointed out that after Microsoft, Meta, and Amazon signaled increased AI capex, it's Nvidia's turn to showcase its AI monetization progress. The focus is on data-center AI-driven spending, with Ives optimistic about the AI spending boom. Despite concerns over valuations of AI-focused companies like Nvidia, Microsoft, Palantir, and MongoDB, Ives sees value in these stocks, predicting a significant increase in AI spending over the next decade.
February 20, 2024 | 6:39 am
News sentiment analysis
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NEUTRAL IMPACT
Amazon's accelerated AI capex, along with Microsoft and Meta, frames the anticipation for Nvidia's earnings report and its AI monetization progress.
Amazon's role in increasing AI capex sets the stage for Nvidia's earnings, but its direct impact on AMZN's stock in the short term is likely neutral, given the broader AI investment narrative.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
MongoDB, identified with Nvidia, Microsoft, and Palantir as part of the AI investment narrative, may be impacted by the broader AI market trends following Nvidia's earnings.
MongoDB's mention as an AI-focused company alongside Nvidia suggests a tangential relation to Nvidia's earnings, with a neutral expected short-term impact on MDB's stock.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
NEUTRAL IMPACT
Meta Platforms, alongside Microsoft and Amazon, has indicated increased AI capex, contributing to the context for Nvidia's anticipated earnings.
Meta's increased AI capex is part of the larger AI investment trend. However, its stock's short-term impact from Nvidia's earnings is indirect, suggesting a neutral outlook.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Microsoft, along with Meta and Amazon, has signaled accelerating capex for AI buildouts, setting the stage for Nvidia's earnings report.
While Microsoft's AI capex signal contributes to the broader AI narrative, its direct impact from Nvidia's earnings is less clear, suggesting a neutral short-term impact on MSFT's stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Palantir, mentioned alongside Nvidia, Microsoft, and MongoDB as AI-focused companies, may see investor sentiment influenced by Nvidia's AI monetization progress.
Palantir's inclusion in the discussion of AI-focused companies suggests some relevance to Nvidia's earnings, but the direct short-term impact on PLTR's stock is uncertain, leaning towards neutral.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
POSITIVE IMPACT
Nvidia's upcoming earnings report is highly anticipated for insights into AI monetization and data-center AI-driven spending, with expectations for a 'major beat-and-raise' special.
Given the analyst's emphasis on Nvidia's pivotal role in the AI revolution and the anticipation of positive earnings, investor sentiment is likely to be positively influenced, potentially driving up Nvidia's stock in the short term.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100