Should Investors Buy AI Stock Nvidia Before Aug. 28?
Nvidia (NASDAQ: NVDA) will announce its second quarter results after the closing bell rings on Wednesday, August 28, 2024. The semiconductor company topped consensus estimates with its last four reports, so Wall Street analysts may have inflated expectations. But there is another reason the stakes are particularly high this time around.
Nvidia shares have advanced 126% year to date, making it the second-best performing stock in the S 500 (SNPINDEX: ^GSPC) behind Super Micro Computer. Investors are clearly excited about artificial intelligence (AI), perhaps too excited. Valuations are creeping higher and some experts think the "AI bubble" will burst in the not-too-distant future, at least temporarily.
In short, Nvidia shares could decline sharply following its second-quarter report on Aug. 28, either because the company misses estimates or because the market is nervous about the durability of AI spending. Is it safe to buy the stock right now?
Source Fool.com
