Investors look to AI-darling Nvidia's earnings as US stocks rally wobbles

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Bullish investors are hoping Wednesday's earnings report from chip heavyweight Nvidia can rejuvenate a U.S. stocks rally that has stumbled in recent weeks.

a beneficiary of the rise of ChatGPTIn one sign of AI's overall market boost, a Societe Generale analysis zeroing in on 20 stocks widely owned by AI-related exchange-traded funds found that removing those stocks from the S&P 500 would cut index performance by roughly 13 percentage points, leaving it with only a marginal gain for the year.

"My guess is the numbers are going to be just fine, but is it going to be enough?" said Chuck Carlson, chief executive officer at Horizon Investment Services. "If it's not, you could see a continuation of the sell-off that we have had here in the last month or so."for the shares, in either direction, by Friday, according to Trade Alert data. That compares with the 8.

Signs that the central bank intends to hold rates around current levels for longer than investors had anticipated could further weigh on stocks. Nvidia was one of 11 stocks named by Goldman Sachs as near-term beneficiaries of the "AI revolution." In a Monday note, Goldman analysts said an equal-weighted basket of those 11 stocks had returned 69% so far in 2023, outpacing a 7% gain for the overall equal-weight S&P 500.

 

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