The stock’s near-term outlook will largely depend on its quarterly results due next week.
In the midst of the turbulence that affected several technological stocks in the previous day after the release of the Consumer Price Index (CPI) of the United States, Nvidia (NVDA) demonstrated its power by remaining practically immune, registering only a minimal drop of 0.17%. This negligible loss was quickly reversed in post-market trading, highlighting the company’s strength in a volatile market. Big tech thus records a rise of 2% this day and 34.5% so far this year.
In contrast, online commerce giant Amazon (AMZN) experienced a decline in 2.15% in its shares, allowing Nvidia to position itself as the fifth most valuable company in the world by market capitalization. Now, it trails only titans like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Saudi Aramco (TADAWUL:2222), and Alphabet (NASDAQ:GOOGL).
With a market capitalization of $1,781 billion, Nvidia surpasses Amazon, whose capitalization stands at 1751,000 million dollars. Over the past 12 months, Nvidia has seen an impressive 230% increase, significantly outpacing Nvidia’s modest 69% increase. Amazon in the same period.
This remarkable stock performance Nvidia blames growing demand for AI-powered semiconductors advanced, which has captured the attention and investment of market participants.
Nvidia: analysts’ forecast
The stock’s near-term outlook will largely depend on its quarterly results due next week, on February 21. EPS of $4.56 is anticipated, an increase of 13.4% compared to the previous quarter and more than five times more than a year ago. Sales are projected at $20,334 million, an increase of 12.2% compared to the previous quarter and a year-on-year increase of more than 100%.
Crucially, Nvidia has surpassed earnings and revenue expectations for the last four consecutive quarters, beating EPS forecasts by 18.7% and sales forecasts by 12.5% in the previous quarter. However, caution is necessary, since any disappointment in next week’s results could trigger a sharp drop in the price, given the company’s high valuation and market expectations.
Source: Ambito
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