{ }
Symbol NVDA
Name NVIDIA Corporation
Currency USD
Sector Information Technology
IndustryGroup Semiconductors & Semiconductor Equipment
Industry Semiconductors & Semiconductor Equipment
Market NASDAQ Global Select
Country United States
State CA
City Santa Clara
Zipcode 95051
Website http://www.nvidia.com
Nvidia's CEO Jensen Huang announced that the company will exceed its previous estimates for Blackwell chip sales, driven by strong demand from major clients like Microsoft and OpenAI. Despite facing supply constraints, Nvidia expects to ship more Blackwell chips each quarter, with revenue projections rising significantly. The company anticipates that Blackwell sales will eventually surpass those of its previous generation Hopper chips, marking a pivotal moment in the AI revolution.
Nvidia's quarterly report showed adjusted earnings and revenue exceeding expectations, with a 94% year-over-year revenue increase, yet the stock fell in extended trading. Analysts are optimistic about holiday sales growth for Amazon and view Apple as a strong investment, while Target's earnings miss led to a cut in guidance, contrasting with Walmart's strong performance. The S&P 500 Financials sector continues to rise, with JPMorgan's stock facing a downgrade amid its significant gains this year.
Nvidia reported a 94% revenue increase to $35.1 billion, driven by strong demand for its AI chips, despite earlier production issues with its Blackwell GPU. CEO Jensen Huang confirmed that production is now on track, with significant sales expected from major clients like Microsoft and OpenAI. The company continues to lead the AI market, although analysts caution that profit margins may shrink as it shifts to more expensive chip production.
Asia-Pacific markets are expected to decline as investors react to Nvidia's strong but slowing quarterly results, with a 94% revenue increase to $35.08 billion. Meanwhile, Indian stocks are under scrutiny following the indictment of Adani Group's chairman for bribery and fraud. In the U.S., Federal Reserve officials express mixed views on inflation and interest rates, with some advocating for further rate cuts while acknowledging ongoing inflationary pressures.
Jim Cramer highlighted a shift in consumer behavior, emphasizing that loyalty is now driven by value rather than brand names, as evidenced by Target's significant revenue miss and a 21% drop in shares. In contrast, Walmart's success in e-commerce and affordability showcases the current market dynamics. Cramer also noted that this focus on value extends to tech companies like Nvidia, which continues to thrive due to the perceived worth of its high-end products among enterprise customers.
Stock futures remained largely unchanged as investors reacted to Nvidia's earnings report, which, despite beating expectations, saw shares drop nearly 2%. Snowflake surged over 18% after also exceeding earnings forecasts. The Dow is on track to underperform this week, while the S&P 500 and Nasdaq Composite have seen gains.
Asian equities are poised for declines following a subdued performance on Wall Street, influenced by Nvidia Corp.'s disappointing revenue forecast. While Nvidia met third-quarter expectations, it fell short of the highest future revenue estimates, leading to a drop in Nasdaq 100 futures. Concurrently, Treasury yields and the dollar increased, and Bitcoin reached a new record high.
The NASDAQ 100 index is experiencing volatility but is moving higher ahead of NVIDIA's earnings report, with potential gains targeting early October highs around 21,200. The Dow remains steady after dipping below 43,000, while the DAX attempts to stabilize after dropping below 19,000, with hopes for a bounce if it closes above 19,300. Overall, the recent pullback appears to be a correction within a broader uptrend.
IG
Nvidia Corp., a key player in the AI sector, announced a fiscal fourth-quarter revenue forecast of approximately $37.5 billion, falling short of the highest analyst estimates that reached up to $41 billion. While the average estimate was $37.1 billion, this suggests potential limits to the company's rapid growth trajectory.
Eaton Corporation (NYSE:ETN) is poised for strong growth, driven by data center expansion and electrification trends, according to UBS analyst Amit Mehrotra, who has set a Buy rating with a price target increase to $431. The company is expected to achieve high single-digit revenue growth and potentially reach earnings of $17 per share by 2028, surpassing consensus estimates. With 90 hedge fund holders, Eaton's focus on data center equipment positions it well in the competitive AI landscape.
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