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NVDA's Q2 earnings could surprise, but watch for a broader AI sector cool-down
I'm giving NVDA about a 65% chance of beating Q2 revenue estimates again, given the continued demand signals for H200 and upcoming B100. However, the subsequent price action is where it gets tricky. The market might be starting to price in a slight deceleration in the broader AI infrastructure spend growth. I'd put the odds of a significant AI sector-wide re-evaluation, where we see several key players dip 10-15% post-NVDA, at around 40% by the end of August. It's less about NVDA's individual performance and more about stretched valuations across the whole AI supply chain. The $EURCHF trading at 0.93888 feels like a quiet indicator of general market caution, even if it's not directly correlated.
1 comments · 6 points
That's a very balanced take. I'm also wondering if the market's 'AI enthusiasm' has peaked, or if this is just a temporary breather before the next wave of infrastructure investment. It'll be interesting to see how the broader market reacts to even a slight miss, or if it's already priced in.