Nvidia stock reached a new record high on Tuesday as investors eagerly awaited the company’s upcoming earnings report. The stock closed at $954 per share, surpassing its previous peak of $950 set in March. Nvidia’s shares have surged by 98% this year, reflecting the high expectations surrounding the company, especially in the artificial intelligence sector.
The market anticipates Nvidia’s earnings report on Wednesday, with options trading suggesting an 8.5% potential move in either direction post-report. Analysts predict Nvidia’s revenue to increase by 240% to $24.6 billion and net income by 540% to $13.1 billion for the first quarter of 2024. These projections highlight the massive growth potential of Nvidia, which has seen a 240% rally in 2023 alone.
Analyst Srini Pajjuri noted the high expectations facing Nvidia, citing the company’s remarkable profit growth and strong position in the AI semiconductor market. Approximately 80% of the AI chip market is dominated by Nvidia, positioning the company as a key player in the industry.
Nvidia’s success has not gone unnoticed, with the company expected to contribute about 40% of all earnings growth in the S&P 500 for the first quarter. Without Nvidia, the projected growth of the benchmark U.S. stock index would drop significantly, highlighting the company’s impact on the broader market.
Investors have shown immense interest in Nvidia’s stock, leading to a significant increase in its value over the past year. The company’s ability to meet the market’s high expectations will determine its performance in the coming days, as the spotlight remains on Nvidia’s role in the AI sector.
In conclusion, Nvidia’s soaring stock prices reflect investors’ optimism towards the company’s future prospects in artificial intelligence. The expectations surrounding Nvidia’s earnings report and the company’s significant impact on the market emphasize its position as a key player in the tech industry.
Article Source
https://www.forbes.com/sites/dereksaul/2024/05/21/nvidia-stock-hits-record-high-ahead-of-blockbuster-earnings/