Nvidia is ‘jet fuel’ for the stock market, Wall Street analysts say

by MMC
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The chipmaker’s earnings per share and revenue for the final quarter of 2023 beat Wall Street expectations, while CEO Jensen Huang flexed his muscles after the release of those numbers by sharing bullish forecasts for the future of the company.

Nvidia shares broke out approximately 14% in pre-market trading. If these gains hold after the opening bell, Nvidia’s total valuation will increase by $240 billion to just under $2 trillion, according to Business Insider calculations.

Stock Futures also surged before the opening bell. The reference Sample;P 500 was about to climb 1% and the technology sector Nasdaq100 looked set to start the day with a 2% rise. Meanwhile, Japan’s flagship Nikkei 225 The index hit a record high for the first time in 34 years.

Here’s how analysts react to Nvidia’s latest report.

Nvidia’s earnings “led to collective relief in the markets, so we saw record highs in Europe and also a record high on the Nikkei,” Brooks told BI. “I don’t think this would have happened if Nvidia’s results hadn’t been so good.”

“It was classic stuff – it was another monster earnings report. And it wasn’t just about earnings, although they were very strong – it was more about the comment that went with it. I have rarely heard a CEO be so optimistic, so committed to this theme and so convinced that this is the future. »

“In the most important moment for the market and technology sector in many years, the godfather of AI Jensen and Nvidia just delivered a strong quarter and guidance, crushing Street expectations and whispers,” Ives said in a research note Wednesday evening.

“This has been a ‘breakthrough moment’ for tech bulls and it puts Kerosene in the tech bull market thesis,” he added.

“Nvidia’s astronomical deal is truly a wonder to behold,” Hollands said Thursday. “Four years ago, Nvidia was valued at less than $100 billion. Today, it is a $1.7 trillion company, making it the largest company in the industry. fourth largest company on the planet measured by market capitalization.

“The latest optimism towards Nvidia will give a head start to the ‘Magnificent Seven’ phenomenon,” he added, referring to the Mega-Cap Big Tech Stocks which have racked up huge gains since the start of 2023.

“The crisis was averted after Nvidia beat expectations with its latest results,” Mold wrote in a note Thursday. “Markets were bracing for a potential disappointment given its shares’ weakness heading into the numbers, but a strong rise in profits and sales put a new flare under the stock.”

“The people who made the most money during the gold rush of the mid-1800s were those who provided the tools needed to get the job done, not those who searched for the precious metal,” he said. he adds.

“Nvidia is effectively playing the same role today in this technological revolution. It is at the heart of a major structural shift in the way we use computers, so it’s no wonder investors want a piece of the pie. ”

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