There is nothing greater than your own advantage. This is what NVIDIA seems to say, which is once again the king of the market and leaves behind in its particular fight so far this year another outstanding student in this 2023 Nasdaq, to Meta. NVIDIA currently capitalizes 939.290 million dollars and is close to joining the exclusive group of companies that are worth a trillion dollars on the stock market.
Its earnings are already clearly consolidating after its triple-digit results, because the explosion of purchases on the value, first in the afterhours after knowing their accounts and then in yesterday’s session, let’s not forget marked for Fitch’s first warning about the United States rating to which investors have turned a deaf ear, it has settled with gains in a single day that have exceeded 30% intraday.
The figures are already known to all for its first fiscal quarter of 2024, as we see in the image, and they beat everything expected, from its earnings per share of $1.09 per share, to $7.19 billion in revenue600 more than those expected by Wall Street.
As for the factors that have led to this improvement, we find AI, Artificial Intelligence, which surrounds everything. The data centers are again the best of the firm, with 4,280 million income and an annual increase of 14%.
Furthermore, its GPU chips are now in massive demand by cloud providers and large consumer internet companies. All this to implement or train AI applications as in the case of ChatGPT, a business that, let us remember, is still clearly in its infancy. And above all, these figures show that these Nvidia semiconductors will be essential for the future, although from now on more competition will open up, because let’s remember that those of the company run by Jen-Hsun Huang are usually more expensive. But clearly what matters to the market is high efficiency.
For your second quarter of the year, Nvidia forecasts that it will earn revenue of about $11 billion, with an improvement of 2% expected, but let’s remember that the market consensus expects 7,150 million, so the forecasts are clearly outdated.
Its translation was immediate, we see that Nvidia breaks, let’s remember, the consecutive losses of four sessions, due to the market situation, and after its gains of 15% already in the session of the past day 18. And it is that, with the advances of yesterday closes its last five days with gains that almost reach 20.5%. Only in the month does he earn more than 40%, which becomes 61% in the quarter. And, so far this year, it accumulates increases that reach a new all-time high for the value that breaks the market so far this year with triple-digit cumulative earnings, of no less than $146 since the years with the which ended 2022. Specifically, they reach 161%.
Thus Nvidia exceeds a more than negative 2022, with those falls of more than 50% to return to the best years of its history: a 2016 in which he gained 226.9% and the worst years of the pandemic, 2020 and 2021, with annual advances for their titles of 122.3 and 125.5% respectively.
As for recommendations, they are already beginning to fall short, as has happened to the first to react to the value. We are talking about the firm Keybanc and its analyst John Vinh that he has clearly raised the stock’s price target from $375 to $500 per sharewhile maintaining its recommendation to overweight Nvidia shares in the market.
While, from Barclays they also place at the iconic 500 dollars per share from previous 275 the stock’s new price target with an overweight recommendation calling its results an ‘extraordinarily strong quarterly report’, in a market that firm analyst Blayne Curtis sees as moving fast and which Nvidia appears to be, with its products, the only solution for this wave that is presented in the market.
Since Bernstein, more moderate, raise their price target on the overweight-rated security from $300 to $475 for that first quarter that they describe as “extremely strong” and their analyst Stacy Rasgon points out that their actions present themselves as an opportunity for anyone who wants to bet on artificial intelligence, despite the fact that, at first glance, the action seems expensive.
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