Investors around the world will be closely watching Nvidia later on Wednesday, which will file its quarterly report after closing time on Wall Street. Tom Lee, head of analysis at Fundstrat Global Advisors, believes the release of the numbers in and of itself will lead to a tsunami of money entering the stock market.
“I think there is a lot of hesitation there, but as we see, the market will go higher after Nvidia's numbers. So, I recommend overweighting the stock until the report comes out.” Market monitoring In the client note.
– Significant additional liquidity
The website notes that investors have been very cautious about the numbers, simply because of the company's size and importance. Lee cites figures showing that institutional and private investors increased their cash holdings by $16 billion in the past week alone.
“That's a lot of extra cash sitting on the sidelines,” continues Lee, who expects a big rally for Nvidia following the report.
“The average has exceeded 20 percent in the last two years, so the probability indicates a significant movement,” he adds.
-You will put money to work
Nvidia's price has consolidated in recent weeks, but the stock still has nearly doubled so far in 2024.
“If Q1 is the end of this consolidation, it means Nvidia could go up strongly. I think it will pull money from the sidelines. There's still a lot of cash out there, and with Nvidia's numbers behind us, I think investors will put money into the business,” he said. wrote Fundstrat's head of analysis, according to Marketwatch.
Nvidia stock fell 0.6 percent to $947.92 in early trading on Wall Street on Wednesday.
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