Investing.com — Wedbush analysts are bullish on Nvidia (NASDAQ:) ahead of its upcoming earnings report, expecting what they describe as another “drop the mic performance” from the AI powerhouse.
With Nvidia at the center of what Wedbush calls the “AI Revolution,” CEO Jensen Huang is positioned to deliver strong results that could propel the tech sector into 2025.
Wedbush believes “another $2 billion beat and $2 billion quarter guide higher is the recipe for success that the Street wants to see.”
Nvidia’s GPUs are described as the “new oil and gold” in a world poised to see over $1 trillion in AI capital expenditures over the next few years.
The firm emphasizes the significance of enterprise AI demand, which Wedbush believes will “carry the torch” for broader market growth.
Wedbush’s recent bullish demand checks in Asia are said to further support this optimism.
The firm highlights the importance of Nvidia’s upcoming commentary on its Blackwell production and demand. Blackwell, Nvidia’s next-generation chip, is seen as pivotal in the evolving AI landscape.
Wedbush notes that recent cloud earnings from Microsoft (NASDAQ:), Amazon (NASDAQ:), and Google (NASDAQ:) underscore “massive enterprise AI demand,” validated by companies like Palantir (NYSE:) and ServiceNow (NYSE:), as second and third derivatives of the AI boom gain traction.
Wedbush likens the current AI buildout to the early days of the internet in the mid-1990s, contrasting it with the tech bubble of 1999.
They emphasize Nvidia’s central role in a “generational spending cycle” that’s just beginning, asserting that for every dollar spent on Nvidia GPUs, there is an $8-$10 multiplier across the tech ecosystem.
With the tech sector set to benefit from macroeconomic tailwinds, including potential rate cuts, Wedbush sees Nvidia’s report as a catalyst for the “bull market engine,” further solidifying its leadership in the “4th Industrial Revolution.”
