In today’s episode of “Asking for a Trend,” Yahoo Finance’s Julie Hyman and Josh Lipton focus on Nvidia (NVDA). Host Julie Hyman discusses the anticipation surrounding Nvidia’s earnings release, with investor expectations and market implications being key topics of discussion. Niles Investment Management Founder, Dan Niles, sheds light on the various drivers behind Nvidia’s success beyond its core chip offerings.
Josh Schafer previews Nvidia’s earnings and examines the broader implications of the company’s performance within the evolving artificial intelligence landscape. The episode was written by Angel Smith.
Julie Hyman explains that Nvidia has been a significant contributor to the S&P 500’s earnings growth, with estimates showing that Nvidia alone added 2.4% points to earnings per share growth for the S&P 500 in the first quarter. However, there are concerns about potential diminishing returns in the future due to increasing competition in the market.
Dan Niles discusses the high expectations surrounding Nvidia’s earnings, highlighting the company’s valuation being 15% below its five-year average. He also points out the potential risk factors, including competition and market volatility.
Additionally, the episode covers the trend of increasing bankruptcies, with Red Lobster being the latest company to file for Chapter 11. Rapid Ratings Chairman and CEO, James Geller, explains the reasons behind the trend and the types of companies most at risk.
In the trading takeaways segment, Josh Schafer discusses the link between artificial intelligence, utilities, and energy sectors. He also analyzes the potential impact of Nvidia’s earnings on the broader market and the optimism surrounding Ethereum ETF approval.
After hours, Urban Outfitters and Toll Brothers saw a surge in their stock prices following positive earnings reports, with both companies beating estimates and showing growth in sales and deliveries.
Overall, the episode highlighted Nvidia’s upcoming earnings as a key event in the market, with implications for the broader economy and the artificial intelligence landscape. It also touched on trends in bankruptcies and the performance of specific companies after hours.
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https://finance.yahoo.com/video/nvidias-growth-trajectory-ai-broadening-220144009.html