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An earnings report from NVIDIA Corporation (NASDAQ:NVDA) will be closely watched by investors and could be a market-leading indicator, a market strategist tells Benzinga ahead of the results 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 year’s second quarter, according to data from Benzinga Pro.

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

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Nvidia has beaten revenue estimates in seven straight quarters and nine of the last 10 quarters. The company 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 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 at the open, filled the gap, and closed slightly higher after reporting earnings. In 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 watch next week and the $140 level could be a key metric ahead of earnings, a level the market strategist does not see the stock hitting before Wednesday.

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

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

As one of the most valuable companies in the world, Nvidia has a large weighting in many indexes and ETFs, Woods warned.

The SPDR S&P 500 ETF Trust SPY lists Nvidia as 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 should be aware that a new rebalancing of the SPDR Select Technology ETF XLK has made Nvidia more important than Apple. The current weightings for the fund have Microsoft first at 21.2%, Nvidia second at 20.9% and Apple third at 4.9%.

“You better know that Nvidia [is] now more important than Apple is.”

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

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

Woods recalled his father buying shares of Nvidia after hearing him talk about 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 example could perfectly illustrate Benzinga’s “if you invested $1,000” story series on how a small investment could pay off over time based on key catalysts and events.

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This article 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