All eyes are on NVIDIA Corp NVDA as the chipmaker gears up to report earnings, scheduled for Aug. 23. One tech analyst says the company's results could ignite a rally across the board.
What Happened: Monday on CNBC's "Squawk On The Street," Wedbush analyst Dan Ives said a strong report from Nvidia could fuel a move higher in tech for the rest of the year.
"It's really about the demand story that I believe is right now skyrocketing," Ives said.
"And if you look at tech across the board, this is going to be guidance heard around the world because it's the godfather of AI and in terms of what we are seeing, that is the best barometer."
He told CNBC that he believes Nvidia's earnings report will help spark a bull market in tech that is already underway.
The Webush analyst will be paying close attention to guidance. He believes there's a chance that Nvidia could be on pace to double its revenues over the next two years.
At the end of the first quarter, Nvidia reported revenue of $7.19 billion and guided for second-quarter revenue of $11 billion, plus or minus 2%, which was well above even the most optimistic analyst forecasts.
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Why It Matters: Nvidia's second-quarter earnings are about much more than just chip demand. It will also say a lot about other AI leaders like Microsoft Corp MSFT and Alphabet Inc GOOGGOOGL, as well as some of the "pure plays" like Salesforce Inc CRM and Palantir Technologies Inc PLTR, Ives said.
"In my opinion, this is just starting what I view as probably the biggest transformational tech theme we've seen in 30 years," he said.
Ives noted he would be "shocked" to see a downside surprise from Nvidia, given the demand and the company's positioning in the market.
"They're the only game in town," the Wedbush analyst said.
Ives expects the bears to go back into "hibernation mode" following the report. He called the recent pullback in tech stocks a "golden buying opportunity" ahead of Nvidia's results Wednesday. It's going to be the biggest earnings week for tech in the last five or six years, he added.
According to estimates from Benzinga Pro, Nvidia is expected to report earnings of $2.07 per share and revenue of $11.17 billion.
Related Link: What's Going On With Nvidia Stock? Earnings Ahead
NVDA Price Action: Nvidia shares are up approximately 210% since the start of the year.
The stock was up 7.23% at $464.31 at the time of writing, per Benzinga Pro.
Photo: Courtesy of Nvidia.
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