Name of opportunity: 👀
NVIDIA Corporation
Nvidia was the talk of the market last night: 🌃
Last night, investors were gathering for ‘watch parties’, as Nvidia released its second quarter earnings report, with the most talked-about party taking place at the Storehouse Irish Pub in New York City.
Nvidia’s second quarter revenue of US$30 billion is more than double what it was in the year prior.
But the stock fluctuated and initially dropped by as much as 8% when the company revealed that its forecast for the third quarter (US$32.5 billion) was not as high as what some analysts had predicted. Some people have suggested that for Nvidia to keep up its current level of growth is unsustainable, meaning that investors and analysts are likely to see more of this disappointment. The slowing growth is worrying investors who have pinned their hopes on AI related stocks.
The drop in stock value could be connected to disappointment over the much anticipated Blackwell AI chip which has been subject to delays.
How hot is this investment opportunity? 🔥🔥🔥
Nvidia is still recommended as a ‘Buy’. Analysts overall predict that it will drop in value with a 0.36% decrease in the next 12 months, reaching an average target price of $125.16. Investors might want to wait and see if analysts adjust their recommendations of Nvidia based on this news.
In its earnings Nvidia also shared that four unnamed customers made up 46% of all the quarter’s revenue. These customers are thought to be Alphabet, Amazon, Meta Platforms and Microsoft. If massive companies like these want to remain on the cutting edge of AI, they need technology from companies like Nvidia. Nvidia’s fast, powerful computer chips enable faster calculations, and as well as facilitating complex AI tasks. Stacy Rasgon, an analyst at Bernstein, said that demand for Nvidia’s products remains as high as ever.
The definitive AI stock: ❇️
We have recently covered Nvidia on Hot Stocks, when the delays to the Blackwell chip were first announced. It’s the biggest semiconductor company based on market cap. The company has two segments. The Compute & Networking segment includes its AI work such as software for autonomous vehicles and cryptocurrency mining. The Graphics segment includes the company’s work making chips for gaming and personal computers.
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