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Nvidia shares rebounded Tuesday as investors braced for the artificial intelligence leader’s quarterly results due later this week, a report described as the most crucial upcoming event for a hot but turbulent stock market.

Key facts

Surprising fact

Options traders are pricing in greater risk of Friday’s move for the benchmark S&P 500 as trading sessions follow the next round of typically crucial economic updates in jobs and price inflation reports Consumer Reports in November and the Federal Reserve’s December interest rate meeting. panel, according to Bank of America. Nvidia represents more than 7% of the market-cap-weighted S&P.

Nvidia Profit Overview

Wall Street expects another explosive quarter for Nvidia. Consensus analyst forecasts call for record earnings per share of $0.75 ($17.4 billion in net income) for the three months ending in October and revenue of $33.2 billion , according to FactSet. This would represent the sixth consecutive quarter in which Nvidia sets new records for all three metrics. Projections call for revenue and profit growth of more than 80% year-over-year in the third quarter for Nvidia, well above the sub-20% annual increases in revenue and net income achieved during the third quarter by the only other companies in the world, valued at $3 trillion. , Apple and Microsoft.

Key context

Nvidia is the the most precious public company in the world in terms of market capitalization, with a valuation of $3.65 trillion surpassing Apple’s $3.45 trillion and Microsoft’s $3.11 trillion. Nvidia benefits from almost a 80% market share in AI accelerators, the very expensive processing equipment needed to train the popular generative AI models developed by entities from Amazon to Danish government. The company’s financial performance and valuation have soared during the recent generative AI revolution. Its stock price, adjusted for the split, has risen about 850% over the past two years, taking its market capitalization from less than $400 billion to within striking distance of $4 trillion, while its projected net profit of $67.9 billion this fiscal year would be more than a 1,400 percent improvement over the $4.4 billion for the year covering most of 2022.

Forbes Rating

We estimate the net worth of Nvidia CEO Jensen Huang to be approximately $128 billion as of Tuesday afternoon, making him the ninth richest no one in the world.

CORRECTION (11/19): This story has been updated to reflect the date of Nvidia’s earnings report.

Further reading

ForbesNvidia’s new hardware eases concerns about transition to BlackwellBy Karl Freund

ForbesNvidia May Approach $5 Trillion Valuation With ‘Generational’ AI Opportunity Still Ahead, Says BofABy Derek Saul