AI Will Be Everything in Nvidia’s Earnings. Here is Why.
May 25, 2023
After the market closes on Wednesday, Nvidia may post mixed business results in its gaming area, but investors are expected to focus on the growth of its data center services.
These items fuel the most recent artificial intelligence applications,AI, which have captivated investors and customers.
Nvidia (NVDA) is expected to post $6.5 billion in revenue for the April quarter, with adjusted earnings of 92 cents per share. Analysts predict $7.2 billion in sales for the current quarter.
Nvidia is a significant manufacturer of semiconductors used in PC and server hardware for video games, artificial intelligence, and cloud computing applications.
KeyBanc Capital Markets analyst John Vinh confirmed his Overweight rating for Nvidia stock earlier this week and boosted his price target to $375 from $320.
“Nvidia remains uniquely positioned to benefit” from the growing market for artificial intelligence and machine learning, Vinh wrote Sunday. “The disappointing launch of the [gaming card] RTX4070 could result in a modest miss in gaming, and we anticipate investors will look through these concerns.” The RTX4070 gaming card was released on April 13.
The company’s chips have significant exposure to generative AI, which has been rising this year. This tool, called AI, generates content by utilizing text, photos, and videos in a brute-force manner. The publication of OpenAI’s ChatGPT late last year increased interest in this type of AI.
Wall Street experts like Nvidia. FactSet shows the stock has around 74% Buy or comparable ratings.
Nvidia stock has increased by more than 100% this year and by 90% over the last year.
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For this approach, we sought closed-end funds that now pay out more than 8% and have returned more than 8% over the last five years. That should be in line with the CPI, which was up 8.5 percent from a year earlier in March, a level that many analysts believe marks the peak pace of price increases.
Banks and Finance
On Wednesday morning, the dollar sank versus the yen and the Swiss franc, despite riskier British and Australian currencies rising from day-ago lows. The fluctuations highlighted the tenuous nature of the earlier-in-the-day tranquillity that appeared to settle over the foreign currency markets.
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