Despite AI Bubble Concerns, Wall Street Expects Nvidia to Show Strong Q2 Earnings

Stock Price Recovers to $130... Regains 2nd Place in Market Cap
Market Focus on Nvidia's Q2 Earnings
Goldman: "Existing Hopper Strong Despite Blackwell Delay"

Leading the artificial intelligence (AI) boom, Nvidia's stock price recovered to $130, reclaiming its position as the second-largest company by market capitalization. Market attention is focused on Nvidia's Q2 earnings, with analyses suggesting that despite the delayed launch of Nvidia's new AI chip Blackwell, the results are expected to surpass consensus estimates.

On the 19th (local time) in the New York stock market, Nvidia's stock closed at $130, up 4.35% from the previous trading day. This marks the first time in 40 days since July 10th ($134.91) that Nvidia's stock price closed at the $130 level. Nvidia's stock has risen for six consecutive trading days since the 12th, leaving only about 8.3% below the intraday high of $140.76 on the 18th.

On the same day, Nvidia's market capitalization reached $3.197 trillion, surpassing Microsoft (MS, $3.13 trillion) to claim the second spot in market cap rankings. The gap with the top-ranked Apple ($3.434 trillion) has also narrowed. Nvidia first reached the number one market cap position on June 18 but lost it two days later.

The market evaluates that Nvidia's stock recovery is due to the resolution of the negative impact from the Blackwell launch delay and the easing of concerns about a U.S. economic recession.

Nvidia's Q2 earnings for fiscal year 2025 (May to July), which could serve as a gauge for the 'AI bubble debate,' are scheduled to be announced on the 28th. Among them, Goldman Sachs analyst Toshiya Hari attracted attention by forecasting that Nvidia's Q2 earnings per share could exceed Wall Street expectations.

Analyst Hari emphasized, "Nvidia's competitive position in AI and accelerated computing remains strong." Regarding the Blackwell launch delay, he analyzed that "since the existing Hopper line is robust, the impact on fiscal year 2025 revenue will be minimal." Accordingly, he maintained a buy rating on Nvidia's stock with a target price of $135.

If Nvidia's Q2 earnings surpass expectations, it is expected to act as a catalyst to quell the AI bubble debate. Earlier, big tech companies such as Amazon, MS, and Alphabet (Google's parent company), which announced their earnings ahead, emphasized their intention to continue AI investments despite spending pressures. These big tech firms are Nvidia's largest customers.

Meanwhile, AMD, considered a rival to Nvidia, surged 4.52% on the day following news of its acquisition of server manufacturer ZT Systems. Intel, which introduced the AI chip Gaudi 3 in April, also rose 3.11%.

This content was produced with the assistance of AI translation services.