Stock futures climb as Nvidia beats Wall Street earnings estimates: Live updates
Traders are engaged in their activities on the trading floor of the New York Stock Exchange.
Equity futures slightly rose on Wednesday, as investors directed their attention towards significant second-quarter outcomes of chip manufacturer Nvidia to determine if the AI frenzy is truly substantial or merely exaggerated.
Contracts linked to the Dow Jones Industrial Average increased by 33 points, equivalent to a 0.1% rise. S&P 500 contracts surged by 0.5%, whereas Nasdaq 100 contracts experienced a 1% gain.
The spotlight was firmly on Wall Street as investors eagerly awaited Nvidia's financial performance for the second quarter. And it certainly lived up to expectations. Nvidia reported earnings of $2.70 per share, taking into account adjustments, and a total revenue of $13.51 billion. These figures surpassed Refinitiv's average analyst prediction of $2.09 per share profits and $11.22 billion in revenue.
Nvidia's impressive financial report for the first quarter in May had sparked investor fascination in the field of artificial intelligence, which emerged as a significant market influencer during the initial six months of the year. This resulted in a skyrocketing valuation of the chip company, surpassing the milestone of $1 trillion.
Nvidia has once again boosted its outlook, as company officials anticipate a surge in third-quarter earnings to reach $16 billion. This projection implies a remarkable annual growth rate of 170%.
According to Dan Ives, a senior analyst at Wedbush Securities, the tech sector and the market as a whole were eagerly anticipating Nvidia's announcement. This announcement is considered the most accurate and powerful indicator of the demand for AI technology. In our opinion, the results and guidance provided by Nvidia were so impressive that they can be considered a game-changing moment. These developments are expected to have a lasting impact on the tech industry throughout the remainder of the year.
In other places, the wider category of semiconductor stocks were also experiencing increased trade during the post-market period. Taiwan Semiconductor's shares saw an increase of 3.1%, while AMD rose by nearly 4%. Marvell Technology observed a gain of 5.4%.
Investors are also anticipating remarks from Jerome Powell, the Chair of the Federal Reserve, who will be speaking at Jackson Hole, Wyoming, on Friday. Wall Street is optimistic that Powell's comments will shed light on the direction of benchmark interest rates.
