Thoughts on NVIDIA's Q2 earnings impact on AI sector ETFs
Been mulling over NVIDIA's upcoming Q2 earnings. Given how much of a bellwether they've become for the entire AI space, I'm thinking a strong beat could easily push things like the $AIQ ETF up another 3-5% within the week following the release. Conversely, any kind of disappointment, even if it's just on guidance, could see a 2-3% pullback across the board for the sector. I'd put the odds of a positive move higher at about 60-65% right now, mainly because the broader sentiment for AI is still incredibly strong, and Jensen tends to deliver.
That said, we've seen some profit-taking in other areas, and if macro data softens up, it could act as a drag. But for the immediate term, post-NVIDIA earnings, I'm leaning more towards a continuation of the upward trend, albeit with the usual volatility. Keep an eye on the volume; that'll tell us if institutions are really buying into the news.
That's a really interesting point about the direct impact on AI sector ETFs. Do you think the market has already priced in a lot of the expected strong performance, or is there still a lot of room for upside surprise?