Nvidia Stock Down 17% From High, July Earnings Could Spark Rally

Industry
โดย The Motley Fool·Read original
Summary · why it matters

Nvidia shares have fallen about 17% from their May peak, but upcoming earnings reports from major AI hyperscalers and Taiwan Semiconductor Manufacturing Company in July could confirm the AI build-out remains strong and propel the stock back to all-time highs. The big four AI hyperscalers plan to spend around $650 billion on data center capital expenditures this year, and Nvidia claims that group will spend more than $1 trillion next year, which should boost Nvidia's revenue. Microsoft's fiscal year 2027 capital expenditures guidance, expected with its earnings, could be a key catalyst, while TSMC's AI semiconductor sales growth would also signal strength for Nvidia. Nvidia trades at 21.7 times forward earnings, the same multiple as the S&P 500, making it attractively priced according to the author.

Impact on stocks 3

Artificial Intelligence▲ · 2 stocks
NVIDIA Corporation
NVDA
▲ PositiveDemandrelevance

Hyperscalers' massive capex plans and TSMC's AI chip sales growth signal strong demand for Nvidia's products.

Microsoft Corporation
MSFT
▲ PositiveCapitalrelevance

Microsoft's upcoming FY2027 capex guidance could confirm strong AI spending, benefiting Nvidia.

Semiconductors▲ · 1 stocks

Theme Impact 5

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