Nvidia's Earnings: AI's Bellwether Faces High Stakes

Nvidia, the "most important stock on planet Earth," is set to report earnings on May 22, with high expectations and no sell ratings. Analysts predict a 10% upside to the average price target, driven by strong AI-related computing and networking demand.
The AI space is not without challenges, as seen with Meta Platforms' underperformance in monetizing AI and Arm Holdings' lukewarm revenue forecast, raising concerns about the tech industry's AI spending spree.
A disappointment from Nvidia could impact the overall positive earnings season, with 78% of S&P 500 companies beating EPS estimates by 8%. Excluding the Magnificent 7, S&P 500 EPS growth is -2%, marking the 5th consecutive quarter of negative growth.