NVIDIA (NVDA.US) will not report earnings until next month, but the performance announced by its largest customer this week will set the tone for its stock price. Due to the optimistic sentiment surrounding the artificial intelligence boom, the company's stock price is currently near its historical high.
Finance and Economics App noticed that Microsoft (MSFT.US), Alphabet (GOOGL.US), Amazon (AMZN.US), and Meta (META.US) will all report their financial results in the coming days. Traders will closely monitor their capital expenditures to gauge demand for NVIDIA chips. NVIDIA's chips are highly acclaimed for artificial intelligence computing. Data shows that this business accounts for over 40% of NVIDIA's sales in the second quarter.
Wall Street expects these four tech giants to announce record capital expenditures, but any disappointment regarding the pace of spending could impact NVIDIA's stock price. NVIDIA's stock price has nearly doubled this year, with its market value increasing by over $2 trillion. This may be a crucial moment for the entire stock market. NVIDIA is the largest contributor to the S&amp;P 500's rise this year, accounting for about a quarter of the index's 22% gain.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20241028/1730115608592341.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="image.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20241028/1730115608592341.png"/>
Dave Mazza, CEO of Roundhill Investments, said, &#34;If these companies publicly state that capital expenditures are increasing, even if only slightly, NVIDIA does need to do so to maintain this momentum. If any adverse factors arise, you will see a significant drop in the stock price.&#34;
According to analysts' average estimates compiled by Bloomberg, the total capital expenditures of the four tech giants in the third quarter are expected to reach a record $56 billion. Most of this spending will be used for NVIDIA and other AI-related device manufacturers, with further increases expected in the coming quarters.
All signs indicate that AI-related spending will continue to remain strong. From chip equipment manufacturer ASML (ASML.US) to Taiwan Semiconductor Manufacturing Company (TSM.US), artificial intelligence has been a major highlight of this earnings season.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20241028/1730115711111620.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="image.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20241028/1730115711111620.png"/>
This backdrop has driven the rise in NVIDIA's stock price, while CEO Jensen Huang has also assured that production of its new Blackwell chip is progressing smoothly with strong demand. NVIDIA is the biggest beneficiary of significant investments in AI computing devices. The stock hit a new all-time high last week, with a current market value of around $3.5 trillion, slightly below Apple (AAPL.US), which remains the world's most valuable company
It is certain that people are concerned about the investment of large technology companies in artificial intelligence, as investors believe that the billions of dollars invested by these companies generate relatively little revenue. Therefore, this will be another focus when these companies announce their earnings this week.
Paul Marino, Chief Revenue Officer of Themes ETFs, said, &#34;You have to walk a fine line with investments,&#34; so that investors will understand that you &#34;have not gone too far.&#34;
According to analysts' average forecasts compiled by Bloomberg, NVIDIA's revenue is expected to more than double this year, reaching $125.6 billion. Next year, in the 2026 fiscal year for the chip manufacturer, sales are projected to increase by 44% to $181 billion.
Of course, there are other companies benefiting from high artificial intelligence spending, including Broadcom, AMD, and Dell Technologies

NVDA

MSFT

NVIDIA will announce its performance next month, but the financial report of its largest customer this week will affect the stock price trend. Due to the optimistic sentiment towards artificial intelligence, NVIDIA's stock price is approaching historical highs. The financial reports of Microsoft, Alphabet, Amazon, and Meta will be closely watched, with their capital expenditures expected to reach record levels, impacting the demand for NVIDIA chips. If expenditures fall short of expectations, the stock price may plummet significantly. Analysts expect the four tech giants' third-quarter capital expenditures to reach $56 billion, mainly for AI-related equipment

- Nvidia (NVDA.US) will announce its earnings next month, but the performance of its largest clients this week will set the tone for its stock price.  
- Major tech companies like Microsoft (MSFT.US), Alphabet (GOOGL.US), Amazon (AMZN.US), and Meta (META.US) are expected to report record capital expenditures, crucial for Nvidia's chip demand, which accounted for over 40% of its Q2 sales.  
- Analysts predict these companies' Q3 capital expenditures will reach a record $56 billion, primarily benefiting Nvidia and other AI-related manufacturers, with Nvidia's revenue expected to more than double this year to $125.6 billion.

This week's tech giants' financial reports may set the tone for NVIDIA's performance expectations. Will investors see any surprises in a month?