All eyes on me
Investors will intensely scrutinize the results of Nvidia after market close today, as one of the most hotly-anticipated releases in recent history will reveal whether the chip giant can build on its stunning 2023 — with analysts expecting more than $20 billion in quarterly revenue (last year, the company did ~$6 billion in Q4).
In 2023, the company rode the wave of AI hype, with its Data Center division reporting quarter after quarter of growth as demand for its GPUs to train AI models skyrocketed. That took Nvidia to the coveted $1 trillion market cap club and, so far this year, the company — or at least the stock — has picked up right where it left off, with a buying frenzy sending it to more than $1.7 trillion, surpassing both Alphabet and Amazon within 24 hrs.
Mood setter
Nvidia has fast become the pacemaker for equity investors, with moves in Nvidia’s stock highly correlated with moves in the wider stock market: if Nvidia shares are having a good day, chances are the rest of the market is too. Nvidia’s stock has risen more than 2% on 29 days over the last 6 months; on 25 of those days — or 86% of the time — the S&P 500 has also risen.
Expectations for Nvidia are still seriously high, but, as our friends at Snacks put it, the easy days may be over, with rivals Intel and AMD announcing their own AI chips to compete with Nvidia in recent months.
