Viewpoint: Nvidia's expected downturn may be positive for US stocks.

Nvidia's weak profit expectations may be positive for the stock market. This brings some surprises for CEO Jensen Huang. Firstly, Nvidia's stock price has only risen 2% this year, although better than the S&P 500 index and on par with the Nasdaq 100 index, it is still the second worst performing year in the past decade. Only 2022 was worse than it. Secondly, Nvidia remains one of the most important stocks globally. According to Cameron Crise's analysis in April, Nvidia's daily standard deviation volatility is as high as $121 billion. The second-ranked Apple has a daily standard deviation volatility of $94 billion. In addition, Michael Ball pointed out that option positions indicate that this earnings report may not have the same impact on the market as before. Although this is a subjective judgment, among the seven CEOs in the S&P 500 index, Jensen Huang is the most persuasive salesperson to some extent. Of course, the superiority of his products is somewhat self-evident, which is also very helpful. Nvidia is an extraordinary revenue-generating company - in recent quarters, its weekly free cash flow has exceeded $1 billion. Tatiana Darie wrote that the company has the strongest profit growth among the seven giants. However, besides artificial intelligence and the seven giants, the most interesting aspect of this earnings conference call may be how it reveals the cost of US trade policy, the impact of which will extend far beyond the technology sector.