Shares of Nvidia closed at an all-time high of $504 on Monday, increasing by 2.3%. This achievement precedes the release of the company's fiscal third-quarter results tomorrow, which analysts predict will report a revenue growth of more than 170%. Even though Nvidia generally does not make predictions for the following year, any indications of demand for 2024 will be studied carefully.
On Monday, shares of Nvidia closed at an all-time high of $504, up 2.3%, ahead of the company's fiscal third-quarter results on Tuesday. Analysts expect to see revenue growth of over 170%. Even more remarkably, growth is forecasted to be even greater in the fiscal fourth quarter, with estimates predicting almost 200% growth. Wall Street is monitoring the company closely during the Thanksgiving holiday, as the organization has been at the center of the year's AI trend. Nvidia's stock price has increased 245% in 2023, making it one of the most successful members of the S&P 500. Its market capitalization is currently $1.2 trillion, larger than that of Meta and Tesla. Any indications during the earnings call that AI enthusiasm is becoming discouraged, that customers are switching to AMD's processors, or that China restrictions are having a harmful effect on the business may result in a fall in shares that have seen notable growth.
Last week, Bank of America analysts wrote that they have a buy rating on the stock and that they anticipate a beat/raise. Nevertheless, they mark China restrictions and competitive worries as two significant issues investors will concentrate on. In particular, AMD's presence in the generative AI market is something that Nvidia has not had to face before. Their CEO, Lisa Su, said at the end of October that the company aims to generate $400 million in GPU revenue during the fourth quarter, and more than $2 billion in 2024.
In response to this, Nvidia unveiled a new GPU, the H200, designed for training and utilizing AI models. It is an upgrade to the H100, which is the same type of chip OpenAI used to train their GPT-4 Turbo. As the H100 can cost thousands of dollars per chip and thousands more to produce the biggest models, Nvidia needs to demonstrate that their products are not too costly for generative AI inference. This new GPU is a part of their data center group, who saw revenue in the fiscal second quarter jump by 171%. For the fiscal third quarter, revenue is predicted to climb 172% to $16.2 billion.
Finally, questions about OpenAI, which has been a catalyst for growth this year, are expected to be discussed during the conference call. After a chaotic weekend, OpenAI said the former Twitch CEO Emmett Shear would be leading the company for the time being. Microsoft and OpenAI's top backer, have felt impacts from this issue. The U.S. has also imposed restrictions that target sales to China, an area where Nvidia claims to take up 20% to 25% of their data center business. However, the company has reportedly identified a way to keep selling to China and still satisfy U.S. standards. As Nvidia avoids giving out annual predictions, investors will be paying close attention to CEO Jensen Huang's tone on the call to assess if the generative AI buzz may be decreasing.
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