Thursday, May 25, 2023

"Nvidia Ignites $263 Billion AI Rally After Forecast Thrills" (NVDA)

Selling picks and shovels to those who hope to mine AI gold.
But at 35 times sales the second misstep (the first will be explained away) will be notable, possibly memorable.

From Bloomberg via Yahoo Finance, May 25:

Nvidia Corp.’s forecast for surging revenue surprised even the most bullish analysts on Wall Street, propelling the chipmaker to the cusp of a $1 trillion market capitalization and igniting a global jump in stocks linked to artificial intelligence.

The Santa Clara, California-based company gained as much as 25% in US premarket trading, on course for a record high, after saying it expects about $11 billion of sales in the three months ending July.

Nvidia, the biggest maker of the advanced chips required to train a new generation of AI services, added to expectations for a burgeoning technology. Rival chipmaker Advanced Micro Devices Inc. jumped 9%, while suppliers from Taiwan Semiconductor Manufacturing Co. to Advantest Corp. also climbed. Along with memory chipmaker SK Hynix Inc. and Europe’s ASML Holding NV, ASMI International NV, BE Semiconductor Industries NV, VAT Group AG and Soitec, they collectively added more than $260 billion of value in a market otherwise preoccupied with concerns about the US debt limit and China’s economic slowdown.

“We believe this is just the beginning of a paradigm-altering generative AI wave,” Barclays analyst Blayne Curtis wrote in a note. “So far, it seems that Nvidia is the one capturing nearly all the economics.”....


Also from Bloomberg at Yahoo Finance:

Nvidia Eyes the $1 Trillion Club as AI Outlook Sparks Rally