What Nvidia’s Earnings Could Mean for These AI Stocks

Key Takeaways

Artificial intelligence (AI)
chipmaker Nvidia (

NVDA

) is set to
report earnings
after the bell Wednesday, with expectations
running high
for the AI heavyweight.

Nvidia’s quarterly results
could lead to big moves
in the company’s share price and influence shares of several other AI stocks, including partners like Micron Technology (

MU

) and Arm (

ARM

), and affect the
broader market
.

Micron Technology
provides Nvidia with memory solutions
for its AI chips, while Nvidia uses
Arm-based systems
in a variety of its products.

Taiwan Semiconductor Manufacturing Company (

TSM

), which manufactures Nvidia chips, could also be affected by its earnings, as well as Dell Technologies (

DELL

), which
uses Nvidia chips
in its products.

Shares of Micron Technology, Arm, TSMC, and Dell have all climbed this year, along with shares of Nvidia, which were up 159% from the start of the year as of Tuesday’s close. Arm shares jumped close to 75% over the same period, while TSMC was up 64%, Dell jumped 46%, and Micron gained 15%.

Shares of Nvidia closed 1.5% higher Tuesday amid rising expectations for the chipmaker’s results. Other chip stocks also gained, with the
PHLX Semiconductor Sector Index
(

SOX

) rising 1.1%.

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Investopedia
.