Wedbush firmly believes in the technology bull market: NVIDIA's earnings report is expected to ignite a new AI trend
Wedbush Securities stated that NVIDIA's quarterly results, to be announced on August 27, could serve as a "positive catalyst" driving the artificial intelligence (AI) revolution. Analysts expect NVIDIA to report earnings per share of $1.01 and revenue of $45.92 billion. Despite the recent sell-off in tech stocks, Wedbush believes that AI application scenarios are just beginning to expand on a large scale, and the future tech bull market cycle will last for 2 to 3 years
According to the Zhitong Finance APP, Wedbush Securities stated that as the use cases for artificial intelligence (AI) continue to increase, NVIDIA (NVDA.US) is likely to become another "positive catalyst" when it announces its quarterly results on August 27.
Wedbush analysts said: "We believe that NVIDIA's earnings report next week will once again serve as a positive catalyst, further reminding investors that this is just the beginning of a long process of an AI revolution aimed at global enterprises and consumers over the next few years. Currently, the development of AI is primarily driven by several large American tech companies, which have invested nearly $350 billion in capital expenditures this year. As more and more enterprises and governments around the world join the AI spending race, a major battle is about to unfold."
Analysts generally expect NVIDIA's upcoming quarterly earnings per share to be $1.01, with revenue of $45.92 billion.
On Tuesday, NVIDIA, along with high-beta tech stocks such as Palantir (PLTR.US) and AMD (AMD.US), faced significant sell-offs. Despite this round of profit-taking, Wedbush stated that the application scenarios for AI are just beginning to "scale up," as more companies begin to realize the immense value that AI is creating.
The analysts added: "We believe that yesterday's tech stock sell-off is a good opportunity to buy core winners and IVES AI 30 stocks, which will benefit from the second/third/fourth waves of the AI revolution."
Analysts stated: "Skepticism will persist, accompanied by some volatile sell-off trends, as short sellers awaken from hibernation, attempting to trigger more unsettling moments... We have seen this dynamic play out time and again since January 2023. We believe that given the trillions of dollars to be invested in AI infrastructure/software/chips/power/applications in the future, the tech bull market cycle will last at least another 2 to 3 years."
