The actions of nvidia hit an all-time high on Tuesday as expectations rose for the quarterly results of the chip designer that has been the biggest beneficiary of the boom in artificial intelligence.
Increased bets that Nvidia’s revenue will once again beat Wall Street estimates have lifted the shares 19% from a two-month low hit last week.
The shares were up 0.4% at $471.55, after hitting an all-time high of $481.87 minutes after the market opened and breaking their previous high of $480.88 on July 14.
Analysts expect Nvidia, which dominates the market for chips used to power generative AI like ChatGPT and many such services, to forecast third-quarter revenue growth of 110% to $12.5 billion when it reports results on Friday. Wednesday.
“It may be the most important report of this earnings season. We want to hear that they can build on the amazing quarter they had last quarter,” said Dennis Dick, market structure analyst at Triple D Trading.
In May, the company forecast second-quarter revenue that exceeded expectations by more than 50%. This pushed its market capitalization above $1 trillion, making its stock the most profitable in the S&P 500 index.
Nvidia’s forecast for last quarter also sparked a rally in AI and big tech stocks, making it one of the main drivers of the rally in US stocks this year.
“To keep the stock price where it is, we’d like to see results start to support those gains,” said Brian Mulberry, a client portfolio manager at Zacks Investment Management, which owns Nvidia shares.
At least 19 brokerages have raised their price targets for Nvidia this month to $500 on average, up 6.5% from the stock’s last closing price. Nvidia shares have more than tripled in value so far this year.
Nvidia posted the biggest rise in popularity among hedge funds in the second quarter, a Goldman Sachs report showed on Monday.
“Nvidia’s story (and) AI is what’s driving the market right now. If Nvidia doesn’t meet expectations, the market would suffer a lot,” Dick said.
(Source: Reuters)
Source: Gestion
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