How Nvidia's Earnings Could Reshape the Markets?

Nvidia's reported $1.2 billion earnings beat, while big tech earnings season exceeded expectations, has prompted market analysts to reassess the company's valuation. Nvidia's $100 billion revenue target for 2024 was seen as just one piece of the puzzle, given the $1.2 billion earnings. Analysts noted that while Nvidia's AI chip sales remain in high demand, delays in GPU production could impact future quarterly performance. The VIX index fell 3.5% after Nvidia's earnings report, indicating reduced market risk appetite. In the S&P 500, Nvidia's earnings performance alleviated Gamma Squeeze effects, though tech stocks still declined 2.8%. Experts highlighted that Nvidia's gross margin rose to 23%, reinforcing its leadership in the AI space. Competition with rivals like AMD and Intel could become more pronounced in upcoming earnings reports. Markets are expecting Nvidia's earnings to be just one quarterly result, with the company's long-term growth in AI still on track.