You may want to take February 21, 2024 off from work.
why?
Nvidia (NVDA), the most important company to humanity, will report earnings after the close. A word from King of Chips leader Jensen Huang could sway the entire market for weeks.
I know this sounds completely ridiculous, but it highlights just how insane it is to study and report on this major AI effort. The companies listed here are very likely to show triple-digit earnings growth in their most recent quarters, but that might be seen as a disappointment.
In fact, NVIDIA may report triple-digit earnings growth and outline its remaining two quarters, but that may not be enough for investors who have seen the stock rise 55% since the beginning of 2024. not.
And I think this concern is nicely highlighted in a new Bank of America memo by veteran chip analyst Vivek Arya that I stumbled upon in my FriYay inbox.
Here's what caught my attention from Aria:
“[We] I wouldn't be surprised if there was a notable but short-lived pullback after the recent parabolic rise in stock prices. Bloomberg options show an implied post-earnings change of ~11%. Expectations have been steadily rising, with NVIDIA F4Q/1Q Report/Induced Sales expected to exceed expectations with bullish buy-side estimates of $21.7B/$23B, 9%/7% above consensus. There is less room for wiggle. ”
That being said, Arya has a buy rating and $800 price target on Nvidia with earnings.
he added:
“However, in our view, any potential discrepancies with bullish expectations are more likely to be in supply (memory, packaging) rather than demand or competition related. , stock price volatility is likely short-lived as investors focus on Nvidia's flagship GPU Tech Conference (GTC), scheduled for March 18-21, featuring key pipeline, partners, and AI TAMs. That's what we expect to stay in between. [total addressable market] update information. For reference, in his T+1 days after the past six annual GTC events, Nvidia stock has risen an average of 6% (SPX has risen 1%). ”
I guess it's just another day in the world of Nvidia hype.
