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An earnings report from NVIDIA Corporation (NASDAQ:NVDA) shall be closely watched by investors and could possibly be a market-leading indicator, a market strategist tells Benzinga ahead of the outcomes coming Aug. 28 after market close.

Nvidia Earnings on Watch: Analysts expect Nvidia to report second-quarter revenue of $28.46 billion, up from $13.51 billion in last yr’s second quarter, in line with data from Benzinga Pro.

Estimates call for Nvidia to report second-quarter earnings pre share of 64 cents, in comparison with 27 cents per share in last yr’s second quarter.

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Nvidia has beaten revenue estimates in seven straight quarters and nine of the last 10 quarters. The corporate has also beaten earnings per share estimates in six straight quarters and eight of the last 10 quarters.

Freedom Capital Markets Chief Global Strategist Jay Woods emphasized the importance of Nvidia’s earnings report available on the market during an interview on Benzinga’s “PreMarket Prep.”

Woods said there’s been a pause in Magnificent 7 stocks, including Nvidia.

“We’re seeing consolidation in those Mag 7 names now,” Woods said.

The market strategist said Nvidia was the tell to the market changing last August.

On Aug. 23, 2023, the stock gapped up on the open, filled the gap, and closed barely higher after reporting earnings. Within the months that followed, the stock declined from $480 (now split-adjusted to $48) to $400 (now split-adjusted to $40) before breaking out in January 2024.

Woods said Nvidia is the one stock to look at next week and the $140 level could possibly be a key metric ahead of earnings, a level the market strategist doesn’t see the stock hitting before Wednesday.

Why It’s Vital: Woods calls Nvidia a market leader and as a top stock, one that would move the markets.

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The market strategist said the stock could take lots of boats with it, depending on how investors react to the earnings.

As considered one of the most dear firms on the planet, Nvidia has a big weighting in lots of indexes and ETFs, Woods warned.

The SPDR S&P 500 ETF Trust SPY lists Nvidia because the third-largest holding at 6.5%, trailing only Apple Inc AAPL at 6.9% and Microsoft Corporation MSFT at 6.6%.

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Woods warned that investors must be aware that a recent rebalancing of the SPDR Select Technology ETF XLK has made Nvidia more essential than Apple. The present weightings for the fund have Microsoft first at 21.2%, Nvidia second at 20.9% and Apple third at 4.9%.

“You higher know that Nvidia [is] now more essential than Apple is.”

Although Woods is cautious about Nvidia’s momentum ahead of its second-quarter results, he still considers the stock top-of-the-line long-term picks.

“My best idea is just buy Nvidia and put it away and don’t have a look at it.”

Woods recalled his father buying shares of Nvidia after hearing him discuss it on TV in 2019. His father put the stock away and forgot about it, before asking Woods what a 10-for-1 stock split meant for his stake. Woods said the investment went from $3,000 to over $100,000.

The instance could perfectly illustrate Benzinga’s “should you invested $1,000” story series on how a small investment could repay over time based on key catalysts and events.

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This text Nvidia Is Next Week’s Top Stock, Market Strategist Says: Why Best Long-Term Idea Is ‘Just Buy Nvidia And Put It Away’ originally appeared on Benzinga.com