The fortunes of certain stocks are very closely linked to Nvidia ‘s fate, a study of market correlations show. Here are the ones to watch. AI poster child Nvidia will report its fiscal second-quarter earnings after Wednesday’s closing bell, and Wall Street is expecting another blowout quarter. LSEG consensus shows that analysts estimate Nvidia will earn an adjusted $1.01 per share on revenue of $46.02 billion, representing a revenue increase of 53% versus the same period a year ago. The chipmaker’s revenue growth has been primarily driven by its data center business, which currently drives around 88% of its total sales. CNBC Pro screened for the names most correlated to Nvidia using financial AI tool Reflexivity: The top three consists of KLA Corporation , Lam Research and Applied Materials . Investors such as T. Rowe Price portfolio manager Tony Wang are also expecting positive news about the company’s product roadmap, which could position it well for coming quarters. As a potential catalyst for the stock, Wang pointed to Rubin, Nvidia’s next AI graphics processor — which will consist of both a central processing unit and a graphics processing unit — and essentially create a unified AI compute engine that other companies have previously tried to accomplish, he said. “To me, that’s where you unlock a new TAM [total addressable market] on the compute because essentially, you can do the workloads a lot faster, and as a result, companies will look to spend more because of the cost curve going down,” Wang told CNBC’s “Money Movers” on Wednesday morning. He added that sentiment remains positive heading into the print because demand is really strong, as Nvidia signaled in its last quarterly report. If Nvidia reports positive results, as analysts expect, it could see a post-earnings boost in valuation, pushing its market capitalization even higher. The chipmaker’s current valuation has already made it the most valuable company in the world and the first to ever hit a market capitalization above $4 trillion.
These stocks are the most correlated to Nvidia as the earnings get set to hit the Street
