STRONGStrong Price

On August 24, NVIDIA will announce its quarterly earnings after the U.S. stock market closes this Wednesday, marking a significant point for Wall Street to assess whether the AI investment boom continues. Analysts suggest that the market should not only focus on the company's revenue and profits but also gauge from CEO Jensen Huang's statements whether the current large-scale investments in AI infrastructure can sustain rapid growth. Expectations for NVIDIA's earnings report have been continuously heightened. Data shows that NVIDIA has exceeded analysts' profit expectations for the past 14 quarters. In the most recent quarter, the company's net profit grew by 210% year-on-year, significantly higher than Wall Street's previous forecast of 126%. Analysts expect NVIDIA's second-quarter revenue to reach a record $92 billion, up from the $78 billion predicted earlier this year. The company needs to achieve over $51.5 billion in profit to surpass current market expectations. However, NVIDIA's stock price has shown a particular pattern following earnings reports. In the past four quarterly earnings announcements, the company's stock price has declined on the next trading day. The options market currently anticipates a 5.3% price fluctuation on the trading day following the earnings announcement, higher than the average level seen in the past 12 months. Some investors have already bet on a price correction, but some analysts remain optimistic. Frank Lee, Head of Global Research for Technology Hardware and Semiconductors at HSBC, recently raised NVIDIA's target price from $325 to $360, citing the company's strategic partnerships with suppliers and its significant role in the open-source AI space.

On August 24, Nvidia will announce its quarterly earnings after the market closes this Wednesday, marking an important milestone for Wall Street in assessing whether the AI investment boom continues. Analysts suggest that the market should not only focus on the company's revenue and profit but also gauge from CEO Jensen Huang's statements whether the current massive investments in AI infrastructure can maintain rapid growth. Expectations for Nvidia's earnings report have been steadily rising. Data shows that Nvidia has exceeded analysts' profit expectations for the past 14 quarters. In the most recent quarter, the company's net profit grew by 210% year-on-year, significantly higher than Wall Street's previous forecast of 126%. Analysts expect Nvidia's second-quarter revenue to reach a record $92 billion, up from the $78 billion predicted earlier this year. The company needs to achieve over $51.5 billion in profit to exceed current market expectations. However, Nvidia's stock price has shown a particular pattern following earnings reports. In the past four quarterly earnings announcements, the company's stock price has dropped on the next trading day. The options market currently anticipates a potential 5.3% fluctuation in Nvidia's stock price on the trading day following the earnings report, which is higher than the average level observed in the past 12 months. Some investors are betting on a price correction, but there are still optimistic analysts. Frank Lee, Head of Global Research for Technology Hardware and Semiconductors at HSBC, recently raised Nvidia's target price from $325 to $360, citing the company's strategic partnerships with suppliers and its significant role in the open-source AI sector.

On August 24, Federal Reserve Chair Walsh will make his debut as chair at the Jackson Hole Central Bank Annual Meeting this Friday. The market anticipates that his speech will further clarify the policy framework following the significant reduction in forward guidance, aiming to alleviate the recent tensions in the U.S. bond market. Previously, Walsh had reduced guidance on the future interest rate path in policy communications and even hinted at a possible adjustment to the inflation target, raising concerns about the Federal Reserve's transparency and policy credibility. Surveys indicate that over 60% of economists believe the Fed's credibility crisis has significantly impacted the surge in long-term U.S. bond yields. Meanwhile, Treasury Secretary Basant is attempting to lower borrowing costs by expanding the repurchase of longer-term U.S. bonds, while Walsh seems to tacitly approve of rising long-end yields, leading the market to focus on the policy divergence between the Fed and the Treasury. Analysts warn that if Walsh fails to provide clear policy signals on Friday, it may be viewed by the market as 'disappointing,' further exacerbating the sell-off in long-end U.S. bonds. Conversely, if he can clearly define potential inflation pressures, it could reduce term premiums and ease pressure on the bond market.