Wall Street focuses on Nvidia's lesser-known role: its growing influence as an investor in AI and technology companies. Nvidia is back in the spotlight amid uncertainty about artificial intelligence dominating investor sentiment. Analysts agree that the semiconductor giant must significantly exceed expectations for both profits and forecasts to maintain market confidence. Nvidia's quarterly results often set trends on Wall Street, and this Wednesday's report is particularly relevant given the current concerns about the future of AI. Spending on artificial intelligence by major cloud service providers is under scrutiny, and any signs of cooling demand for Nvidia's products could be interpreted as a slowdown in the AI boom, a sector where investors have heavily bet in recent years. The emergence of Anthropic's Claude AI and the reconfiguration of winning and losing tech stocks keep attention on the sector. Lauren Goodwin, chief market strategist at New York Life Investments, emphasizes that Nvidia remains central to the AI narrative and that hyperscaler investment is the best gauge of real demand. As long as companies continue to invest aggressively in AI infrastructure, no trend change is expected, although supply remains the main constraint. Nvidia is expected to report revenues of $65.91 billion, with $60 billion coming from its data center business, the key driver of its growth. Analysts recommend closely monitoring the tone and outlook provided by Jensen Huang, Nvidia's CEO, regarding future chip demand. Dan Ives, an analyst at Wedbush, anticipates that Nvidia will exceed forecasts but emphasizes that the market will be particularly attentive to Huang's statements on the evolution of global AI demand and appetite for its chips. Joe Moore from Morgan Stanley maintains an optimistic view and recommends buying shares ahead of the results, setting a target price of $250 per share, which would represent a 29% increase. Moore also suggests following Huang's upcoming public appearances for details on the Rubin platform, which could further boost the company's value. Anthony Saglimbene, chief strategist at Ameriprise, notes that Nvidia's ability to ramp up production of its new Rubin model will be key to reinforcing investor confidence in the company's management and its ability to meet large-scale delivery timelines. Meanwhile, Joe Mazzola, head of trading at Charles Schwab, warns about the impact that rising production costs, especially in high-bandwidth memory, may have on Nvidia's profit margins. He emphasizes that data center revenues will be the main driver to watch and that forecasts must exceed market consensus. Luke Rahbari, co-manager of The Rational Equity Armor Fund, agrees that future prospects will be crucial. Any signs of a slowdown or cutback in client investment could be interpreted as lower chip demand, affecting both the stock and the overall AI sector. Source: businessinsider.es