Nvidia's Earnings Report and Global Economic Tensions Ahead

Nvidia prepares for its quarterly earnings, which could determine stock market trends. Investor confidence is wavering amidst geopolitical tensions and tariff threats, indicating possible impacts on stock prices.

Date: 25-02-2025

AI Rating: 7

Nvidia's Earnings Report: Nvidia (NVDA) is set to report its earnings after the market closes on Feb. 26, marking its first quarterly report since the emergence of the DeepSeek AI model. There’s significant investor attention, especially following a substantial decline in market value due to concerns over increased competition in the AI sector. The earnings report will be pivotal in assessing Nvidia's rebound and its market leadership strength.

Total Earnings Growth: Out of the 403 S&P 500 companies that reported, total earnings surged by +12.0% year-over-year, alongside a revenue increase of +5.5%. This positive growth trend indicates a resilient market environment, which could support stock prices if the trend continues.

EPS and Revenue Estimates: A notable 77.9% of these companies exceeded EPS estimates, while 65.8% surpassed revenue estimates. This strong performance could bolster the overall market sentiment and influence stock prices positively, especially for high-performing sectors.

Focus on the Retail Sector: With the reporting focus shifting towards retail, the performance of e-commerce mainly drives optimism. The Zacks Retail sector has reported total earnings growth of +45.9%, highlighting robust consumer spending which often reflects positively on stock prices.

Stocks: NVDA PAA BJ PPC AMZN