Analysts Bullish on Nvidia Ahead of Earnings Report

Investing.com — Wedbush analysts are optimistic about Nvidia (NASDAQ:NVDA) ahead of its upcoming earnings report, predicting another "drop the mic performance" from this AI powerhouse.

Nvidia, central to what Wedbush calls the "AI Revolution," has CEO Jensen Huang positioned to deliver impressive results, potentially propelling the tech sector into 2025. Wedbush anticipates a "$2 billion beat and $2 billion quarter guide higher" will satisfy market expectations.

Describing Nvidia's GPUs as the "new oil and gold," the firm notes the impending over $1 trillion in AI capital expenditures.

They emphasize the significance of enterprise AI demand, which is expected to support broader market growth. Recent bullish demand checks in Asia further bolster this optimism.

Nvidia's upcoming commentary on Blackwell production and demand is highlighted, as this next-generation chip is crucial in the evolving AI landscape.

Recent earnings reports from cloud giants Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Google (NASDAQ:GOOGL) underscore "massive enterprise AI demand," confirmed by firms like Palantir (NYSE:PLTR) and ServiceNow (NYSE:NOW), indicating that the AI boom is gaining traction.

Wedbush compares the ongoing AI buildout to the early days of the internet in the mid-1990s and contrasts it with the 1999 tech bubble. They stress Nvidia’s integral role in a "generational spending cycle" just beginning, stating that every dollar spent on Nvidia GPUs spurs an $8-$10 multiplier across the tech ecosystem.

With supportive macroeconomic tailwinds, including potential rate cuts, Wedbush views Nvidia's upcoming report as a catalyst for the "bull market engine," further solidifying its leadership in the "4th Industrial Revolution."