The rapid acceleration in the AI (artificial intelligence) story has lit a fire under the shares of semiconductor designer Nvidia (NVDA:NASDAQ) in 2023, making it among the best performers on the US market.

However, in recent weeks the stock has stalled and its near-term trajectory is likely to be dictated by second quarter earnings out on           23 August.

Nvidia stands to benefit from the development of AI because its chips are used to develop machine learning software. The company calls its DGX system an ‘AI supercomputer’ and ‘the blueprint of AI factories’ being built across the globe.

As major tech companies invest heavily in AI, this will be expected to translate into significant earnings growth for Nvidia.

For the year to January 2024 EPS (earnings per share) is expected to more than treble to $7.94 and for the three-month quarter just gone, $2.06 is anticipated on
revenue of $11.1 billion.

In the first quarter Nvidia handily beat estimates, with EPS of $1.09 versus the forecast $0.92 on revenue of $7.19 billion against the anticipated $6.5 billion. The one big weak spot was the gaming division which was hit by the weaker macro-economic backdrop.

US UPDATES OVER THE NEXT 7 DAYS

QUARTERLY RESULTS

August 18: Deere & Company, Palo Alto Networks, Estee Lauder

August 21: Nordson

August 22: Lowe’s, Medtronic, Zoom Video

August 23: Nvidia, Salesforce, Analog Devices, Autodesk, NetApp, Bath & Body Works, Advance Auto Parts

August 24: Intuit, PDD Holdings, Workday, Dollar Tree, Ulta Beauty, JM Smucker

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