STOCKS TELEGRAPH

Tag: NASDAQ: NVDA

  • NVIDIA Corp. Surges on Strong Q4 Performance

    NVIDIA Corp. (NASDAQ: NVDA) experienced a significant upswing in pre-market trading, soaring by as much as 9% following the release of its impressive fourth-quarter and full-year 2023 results. Despite a slight dip of nearly 3% the previous day, the tech giant is now on a reverse course, buoyed by robust performance metrics.

    Record-Breaking Performance in Q4

    In Q4, NVIDIA witnessed another record-breaking quarter, with revenue hitting $22.1 billion, marking a sequential increase of 22% and a staggering year-on-year surge of 265%. Fiscal 2024 saw revenue reach $60.9 billion, representing a remarkable 126% increase from the previous year.

    Data Center Dominance

    A standout performer was NVIDIA’s Data Center division, with revenue for fiscal 2024 soaring to $47.5 billion, more than tripling from the prior year. The company attributes this growth to the ongoing transition to accelerated computing, particularly evident in the burgeoning AI sector.

    Expanding AI Applications

    NVIDIA’s Data Center platform has proven instrumental in facilitating a wide array of AI applications across industries. From training and inference of generative AI to large language models, the platform’s versatility and performance have garnered widespread adoption.

    Conclusion

    With NVIDIA’s strong showing in Q4 and throughout fiscal 2024, fueled by robust Data Center performance and expanding AI applications, investors are optimistic about the company’s future prospects. As NVIDIA continues to innovate and expand its reach across various sectors, the stage is set for sustained growth and technological advancement.

  • Nvidia (NVDA) Could Continue Long-Term Rally

    Nvidia (NVDA) Could Continue Long-Term Rally

    The evolution of the share price of Nvidia (NVDA) has been one of the most remarkable in the last decade, going from $5.7 in 2009 to more than $500 in 2020, in a bull market of a magnitude that few stocks have been able to equal in that period.

    Nvidia is one of the Nasdaq’s largest stocks, trading on the Nasdaq100 and one of the 15 biggest companies on the capitalization index, ranked 10th at the time of this writing.

    Despite being a U.S. company, the Asian market depends on it, especially on the Chinese part of it because if we consider Taiwan as within the Sino-sphere, we see that it is half of the sales of the company. Nvidia is possibly not involved in a big trade war between China and the United States because of this.

    With more than 70 percent of the money in the hands of this form of shareholder, the company’s shareholding is highly institutional, with funds such as Vanguard or Fidelity leading the list. The company’s founder, the Taiwanese Hsun, has a full fortune with that stake. He still has an interest in the company, which is good news for him.

    The outcomes of Nvidia are completely fantastic, with impressive profit growth, and that more than explains why this stock is so attractive.

    What we will end up seeing in 2018 and 2019 was already expected by the stock market launch of 2015 and the true explosion of 2016 and 2017.

    As we see, the price of a share increases unabashedly often because it can actually “detect” that the future profit is going to be exceptional for many years. That was the case at Nvidia these years.

    Nvidia has many competitors in the world market and particularly in the Asian markets.

    In the United States, while it competes with names such as AMD, IBM or Intel, it is the most profitable company in this market.

    An all-out trade war between the United States and China will be one of the clouds that might present further potential problems for this company, causing the company to experience significant retaliation in the Chinese market (not so much in Taiwan, which is pro-USA).

    Currently Nvidia’s stock price is at $518 with yearly gain of 138%.

  • Nvidia (NASDAQ: NVDA) Stock Keep Rising Amid ARM Deal

    Nvidia (NASDAQ: NVDA) Stock Keep Rising Amid ARM Deal

    NVIDIA Corporation (NASDAQ: NVDA) has announced that it has decided to acquire Arm Ltd. from SoftBank Inc. for about $40 billion in stock and cash deal. This deal is considered to be the first-ever deal of this kind in the semi-conductor industry but Nvidia Inc has received a strong backlash from its rival. Nvidia deal with SoftBank would put Arm Ltd under the control of a US-based firm in the middle of a battle between the US and China.

    Arm Ltd. has a strong reach as a supplier of designs and intellectual property to most of the global semiconductor industry. It is considered to be the major supplier of its technology to companies such as Intel Corp, Samsung Electronics Co Ltd, and  Qualcomm Inc who increasingly compete with Nvidia. Nvidia Corporation is anticipated to close the deal in 18 months after receiving regulatory approval but there are speculations that the deal will be delayed.

    ARK Invest Analyst James Wang said that this deal required approval from four countries the UK, the US, China, and Japan so there are 50/50 chances that the deal will be delayed. The analyst said that this is a complicated deal and it is too early to say that this will be completed or not. Mark Lipacis maintained a Buy rating for Nivida as he raised the price target from $570 to $680.

    Geoff Blaber, vice president of research for the Americas with CCS Insights revealed that this deal will receive a lot of obstacles and will encounter huge criticism from the customers of Arm Ltd. Nvidia Chief Executive Jensen Huang and Arm Chief Executive Simon Segars made a very interesting point that because the company is based in the UK, it is free from US trade barriers and regulations. Nvidia will maintain the UK headquarter of Arm Ltd.

    Shares of Nvidia Corporation (NASDAQ: NVDA) soared 5.82% as it gained +28.31 during the trading session of Monday. NVDA share price went from a low point around $169.32 to briefly over $589.07 in the past 52 weeks, though shares have since pulled back to $514.89. Nvidia Corporation’s market cap has remained high, hitting $321.53 billion at the time of writing. Looking at its liquidity, it has a current ratio of 6.10.

    Nvidia said that the Arm will continue to work as a neutral supplier after the deal and it will not interfere in any Arm’s Licensing efforts. But the deal has garnered a huge criticism. One of the Chinese chip executives said that it is hard to give services in China if Arm had an American Parent company. South-Korean chip officials said that after this deal Arm could increase the licensing fees for the competitors.

    The combination of Nvidia and Arm Ltd will reshape the semiconductor industry in the coming years. After this deal, Nvidia will be able to gain the ability to own the whole chip stack, across mobile phones, computers, and cloud-computing data centers.