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Nvidia Is the Final Hurdle for Mega Tech’s Earnings Victory Lap

May 22, 2024 - bloomberg.com
Nvidia Corp., a leading artificial intelligence chipmaking company, is set to report its earnings and provide a highly anticipated outlook that could influence the tone for the second half of the year. Investors were initially apprehensive as technology companies began reporting, questioning whether the AI boom had peaked and if the sector could meet high expectations.

However, a month later, most of these concerns have been alleviated, with the S&P 500 Index reaching an all-time high due to robust corporate profits. This strong earnings season for big tech has largely dispelled fears about the sustainability of the AI boom.

Key takeaways:

  • Nvidia Corp., a leading AI chipmaking company, is set to report its earnings and provide a much-anticipated outlook.
  • Investors were initially nervous about technology companies' earnings reports, questioning whether the AI boom had been overextended.
  • There were concerns about whether these tech companies could meet the high expectations set for them.
  • A month later, most of these concerns have been alleviated, with the S&P 500 Index reaching an all-time high due to strong corporate profits.
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