Some analysts are focused on whether Nvidia has enough supply to meet near-term demand, in part because the company depends on Taiwan Semiconductor Manufacturing Company for its chips.
Some analysts are focused on whether Nvidia has enough supply to meet near-term demand, in part because the company depends on Taiwan Semiconductor Manufacturing Company for its chips.
Reuters
Nvidia, the locomotive of the S&P 500, is on track to have its worst day since last May this Tuesday. The drop comes ahead of its earnings report on Wednesday.
The chipmaker’s shares fell 6.1%, on track for their biggest percentage drop since May 31, 2023, when they fell 5.7%, according to data from Dow Jones Market. Thus, Nvidia registers losses for four of the last five days.
Despite this, the Wall Street giant’s shares show an increase of 14.5% in February and almost 40% so far in 2024. In the last 12 months, the firm’s shares have risen an impressive 218.5%.
This Tuesday, the Nasdaq Composite fell 1.5%, while the S&P 500 fell 0.9%. In this way, Nvidia, which has stood out in the last year, drags down other technology stocks.
Nvidia: what is behind its fall
Analysts cited by the American press maintain that what is happening “is simply coverage before the results. The other part is that we are still seeing some follow-through of Friday’s sale, as people are not nervous about a rebound in inflation, but she is a little less sure that inflation will continue to fall in a straight line“.
Wall Street will be attentive to the comments of the Nvidia CEO, Jensen Huang, to get an indication of how long these stratospheric growth rates are expected to last. The company already reported 200% year-on-year growth in the third quarter, and a similar rate of expansion is expected in the first quarter of this year.
One potential concern is that many of Nvidia’s GPU sales they go to big tech companies like Microsoft, Amazon, Meta and Google. Either of them could decide to slow down spending on AI hardware at some point if they don’t see the anticipated benefits.
Some analysts are focused on whether Nvidia has enough supply to meet near-term demand, in part because the company depends on Taiwan Semiconductor Manufacturing Company for your chips. There’s also anticipation about the company’s new high-end AI chip, called B100, which will begin shipping this year.
Source: Ambito
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