Stock exchanges are waiting for Nvidia's results. WIG20 is the highest since January 2022.

There is nothing more important this week than results Nvidia companies, which has been delighting investors for several quarters, showing the incredible expansion of its business. At the beginning, it is worth adding that Nvidia's revenues are costs for other companies that will only want to start monetizing tools based on artificial intelligence. Nevertheless, Nvidia is making money now, and all the rest of the companies will probably make money in the future. How much, at what margin, on what scale? AI business Will they monetize other companies? We will probably find out this year, because investors will say "I'm checking" and will want to see revenues in the next quarters. However, returning to Nvidia, the market expects that the volatility of share prices after Wednesday's results may exceed 10%.

The company has a capitalization of USD 1,793 trillion and is the fourth largest listed company in the world after Saudi Aramco, Apple Lossless Audio CODEC (ALAC), i Microsoft. Nvidia's weight in the Nasdaq 100 is over 5%, and in the S&P 500 the weight is 4,24%. As a result, a change in the price of Nvidia shares may affect the behavior of entire indices already during Thursday's session on Wall Street. Nevertheless, sentiment towards Nvidia will also cast a shadow on other stock markets.

WIG20 is the highest since January 2022.

In our home country, it is impossible not to notice an increase in the index Wig20 to the highest level since January 2022, which means covering the entire correction that occurred at the beginning of 2024. As a result, from the beginning of October 2023 to today, the index of the largest companies listed on the WSE has increased by approximately 30%. It seems that the key levels may currently be around 2430 and 2480 points, where the peaks from January 2022 and October 2021 fall. Meanwhile, support may be around 2300 points. and 2230 points. It is also impossible not to notice that at this level of interest rates in Poland and perhaps their lack of change later in the year (especially no decline), a P/E valuation of 14x seems quite high. If the valuation of WIG20 companies climbed towards 15-16 P/E, given the current level of risk, these valuations might no longer be attractive to investors. This, in turn, could soon lead to a greater correction on our stock market.