Everyone Is Watching this ONE AI Stock




Trading at a market capitalization of $1.72 trillion, many traders are watching this one artificial intelligence stock today: Nvidia (NVDA). The graphics chip giant will post quarterly results tomorrow after markets close.

NVDA stock already gained a jaw-dropping 40.24% YTD ahead of the report. Stock markets priced obscene revenue and profit margin growth. As the third-most valuable firm in the world, the stock risks profit-taking. Still, it could impress even the most bullish analyst, triggering a post-earnings rally.

Nvidia is thriving on strong sales of its AI server chips like the H100. AI developers need the computing power to train their models. For example, OpenAI, which powers ChatGPT, is at the heart of Microsoft’s (MSFT) CoPilot offering on the Bing search and Internet Explorer browser.

Any small disappointment could bring down tech firms that mentioned AI all too often. Media often cites AI with Amazon (AMZN). Fortunately, the Dow Jones will add AMZN stock to the index. This would force any ETF tracking the DJIA to buy AMZN stock. Alphabet (GOOG), Apple (AAPL), and Intel (INTC) are also mentioned in media stories about AI.

Your Takeaway

Nvidia will break down its revenue growth by country. China ordered as many chips as it could to circumvent US trade restrictions. If Chinese tech firms have enough Nvidia chips, that would slow the semiconductor stock’s great rally.



Source link

About The Author

Scroll to Top