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NVIDIA stock rose on Tuesday as investors geared up for the artificial intelligence leader’s quarterly results due later this week. The report has been hailed as the most important event yet for the hot and turbulent stock market.
Nvidia’s office building in China.
VCG (via Getty Images)
important facts
Nvidia stock rose 4.9% to $147.01, coming within $2 of its all-time closing high set earlier this month and pushing the tech-heavy Nasdaq index up 1%, its highest since Nov. 7. Recorded.
The increase comes ahead of the semiconductor chip designer’s third-quarter earnings call, scheduled for Wednesday just after 4 p.m. ET.
The result is likely to have wide-ranging implications for the overall market, which has subsided after a sharp post-election rally.
Bank of America strategists Gonzalo Assis and Ohsung Kwon predicted in a note to clients on Sunday that NVIDIA’s earnings “could drive the near-term direction of the market.” is the “most dominant” and “most important stock in the market,” he added. ”
amazing facts
Options traders are looking more closely at the trading hours that follow the typically important economic updates from the November jobs and CPI inflation report and the Federal Reserve Board in December. The S&P 500 Index is pricing in the risk that it will rise on Friday. According to Bank of America, the panel stated: Nvidia accounts for more than 7% of the market cap weighted S&P.
Nvidia earnings preview
Wall Street is expecting another big quarter for NVIDIA. Analyst consensus forecasts call for record earnings of $0.75 per share (net income of $17.4 billion) and sales of $33.2 billion in the three months ending in October, according to FactSet. This marks the sixth consecutive quarter that NVIDIA has set new records in all three of these metrics. The forecast calls for NVIDIA’s third-quarter sales and profits to grow more than 80% year-over-year, eclipsing the annual sales and bottom-line growth the world’s only $3 trillion company delivered during the quarter. Much more than less than %. , Apple and Microsoft.
Main background
Nvidia is the world’s most valuable publicly traded company by market capitalization, valued at $3.65 trillion, ahead of Apple’s $3.45 trillion and Microsoft’s $3.11 trillion. Nvidia has nearly 80% market share in AI accelerators, the extremely expensive processing equipment needed to train trending generative AI models developed by companies from Amazon to the Danish government. The company’s financial performance and valuation have skyrocketed amid the recent generative AI revolution. Split-adjusted stock prices have risen about 850% over the past two years, market capitalization has risen from less than $400 billion to nearly $4 trillion, and expected net income for the year is $67.9 billion, with net income expected to reach $1.4 trillion. It will be over a billion dollars. % improvement from $4.4 billion for the year that includes most of 2022.
Forbes rating
Nvidia CEO Jensen Huang’s net worth was estimated at about $128 billion as of Tuesday afternoon, making him the ninth richest person in the world.
Correction (11/19): This article has been updated to reflect the date of Nvidia’s earnings report.
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