A sign for a Nvidia office building is shown in Santa Clara, Calif., Wednesday, Aug. 7, 2024. LOS ANGELES — Nvidia may have exceeded Wall Street estimates as its profit jumped — buffeted by the chipmaking dominance that has cemented Nvidia’s place as the poster child of the artificial intelligence boom — but investors seemed less than impressed.
Ryan Detrick, chief market strategist at Carson Group, said that despite growing revenue “it appears the bar was just set a tad too high this earnings season.” “The people who are investing in Nvidia infrastructure are getting returns on it right away,” Jensen Huang, founder and CEO of Nvidia, said on a call with analysts. “It’s the best ROI infrastructure, computing infrastructure investment you can make today.”
Through the year’s first six months, Nvidia’s stock price soared nearly 150%. At that point, it was trading at a little more than 100 times the company’s earnings over the prior 12 months. That’s much more expensive than it’s been historically and than the S&P 500 in general. That’s why analysts warn of a selloff if Wall Street sees any indication that AI demand is waning.
“This is the most watched earnings — not just in tech, but in the market, in many years,” he said. “Investors will initially overreact to any sort of short-lived weakness. But I believe this actually put more fuel into the tank of the bull market.”
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: nbcchicago - 🏆 545. / 51 Read more »
Source: FoxBusiness - 🏆 458. / 53 Read more »
Source: CNBC - 🏆 12. / 72 Read more »
Source: CNBC - 🏆 12. / 72 Read more »