Nvidia, one of the top-performing stocks of 2024, has seen impressive market returns due to the growing demand for AI technology in various industries. However, concerns about the company's valuation and a potential AI bubble have emerged. On top of that, Nvidia's largest customer, Super Micro Computer Inc., is facing possible delisting and a DOJ investigation, which could impact the chipmaker's future earnings. With NVIDIA's Q4 2024 earnings report set to be released on November 20, the stock could face further challenges in maintaining its impressive performance.
The financial markets in both Asia and the United States were met with a massive sell-off this week, triggered by fears of a potential US recession and escalating antitrust investigations. With the dominant position of Nvidia's AI processors being the key focus of the probes, the chip giant saw its stock price plummet by 9.5%, losing a staggering $279 billion in market capitalization. This downward trend has also affected other major US tech companies, highlighting concerns about the sustainability of the AI-driven stock market rally. With the upcoming employment figures and continued economic uncertainty, investors are bracing for further market volatility.
Nvidia, the AI chipmaker, once again exceeded Wall Street's expectations with its impressive Q2 results, reporting over $30 billion in sales, up 122% from the same period last year. This marks the company's stunning growth streak over the past two years. Despite the strong numbers and modestly better sales guidance, Nvidia's stock dipped up to 5% in after-hours trading, showing that investors may now be expecting more than just good results from the company. With their peerless processors driving the AI technology boom and the company's astonishing market value of over $3 trillion, Nvidia's role in the tech sector and its stock's popularity has reached new heights in recent years.
In its second-quarter earnings report, chipmaker Nvidia surpassed Wall Street expectations with record revenues of over $30 billion for the fiscal quarter. However, the stock experienced a dip of 7% in after-hours trading before recovering, likely due to a lower-than-expected gross margin. Despite this, CEO Jensen Huang remains optimistic about the company's future, citing strong demand for their products and the anticipation for their new Blackwell GPU.
As the tech industry eagerly awaits Nvidia's fiscal 2025 Q2 results, the options market predicts a massive $300 billion swing in market cap. With the AI industry largely dependent on the company's performance, major tech stocks are likely to be influenced by Nvidia's guidance. However, concerns about a delay in the debut of Nvidia's new Blackwell GPU and the potential impact on customer purchases have some analysts advising clients to purchase S&P 500 puts ahead of the results. The highly-anticipated earnings call has the potential to make a significant impact on the market.
Jensen Huang, the billionaire CEO of Nvidia, started his career as a dishwasher at Denny's diner in the late 1970s. His relentless work ethic and determination eventually led him to found and lead one of the most valuable companies in the world. Despite his success, Huang remains humble, often reflecting on his humble beginnings and valuing every job he takes on. Today, his company is at the forefront of the tech industry, with a skyrocketing stock and a soaring net worth for its CEO.
Despite facing intense pressure and grueling schedules at AI chipmaker Nvidia, employees are not quitting thanks to their lucrative stock compensation packages. With the company's soaring success in the artificial intelligence industry, employees have become millionaires and are willing to endure the harsh work environment for the potential of a larger windfall. Compared to the industry average attrition rate of 17.7 percent, Nvidia boasts a meager 2.7 percent turnover rate, making it a highly desirable place to work.
As one of the top designers of graphics chips, Nvidia is set to report its earnings tomorrow, and investors are eagerly anticipating the results. With an impressive quarter behind them, analysts are expecting continued growth from the company. However, in a volatile market for growth stocks, some are questioning if Nvidia is a buy or sell. We analyze the data and compare Nvidia to its peers to give our expert insights on whether investors should hold, buy, or sell Nvidia going into earnings. Additionally, we offer a free report on a fast-growing enterprise software stock that could be the "Gorilla of the future."
As AI technology continues to soar in popularity among investors, companies are adapting to make their shares more affordable. This week, Nvidia completed a forward-stock split, decreasing its share price to 1/10th of its previous value, making it more accessible to everyday investors. With its highly sought-after GPUs driving a 700% increase in stock price since 2023, it's no surprise that Nvidia's board chose to split its stock for the second time in less than a year. Other fast-growing companies like CrowdStrike Holdings, with its shares up over 500% since its IPO in 2019, may also follow in Nvidia's footsteps and conduct stock splits in the near future.
Nvidia, the Silicon maker, has surpassed Apple to become the world's second most valuable company. This is thanks to the surging stock prices and a market capitalization of over $3 trillion. The company's success can be attributed to the increasing demand for its AI server chips in the market. While Apple is currently in the third spot, it is expected to bounce back with new AI features and collaborations at its upcoming Worldwide Developers Conference. This shift in market value emphasizes the growing importance of AI in the tech world.