The chipmaker’s shares fell 4.4% au$694.52its largest percentage drop since October 2023. Thus, Nvidia recorded declines for four of the last five days, up to almost -4%.
But, then, what will happen to the share price after presenting its corporate balance sheet? This is the question many investors are asking as they wait for Nvidia to report its fourth-quarter 2023 earnings.
The California-based chipmaker has quickly become the third-largest company on Wall Street, behind Microsoft and Apple, largely due to its crucial role in the rise of artificial intelligence; Nvidia covers almost the entire AI chip manufacturing market in the United States.
Too big to fail investors
But with a market cap of $1.7 trillion and a year-to-date return of about 40% (the best in the S&P 500), the company has a lot to live up to. Investors expect Nvidia to report earnings of $4.59 per share and $20.378 billion in revenuea significant increase from $6.05 billion the previous year.
Analysts consulted by the specialized company consider that there is a very realistic probability that they will exceed expectations, but a 0% chance that they will meet the feeling of those expectationsnoting that investors expect big earnings beats and hype around the company.
However, there is some concern about whether this can last. Nvidia shares have quintupled since the end of 2022 as the AI revolution takes holdand it is difficult to imagine that such stratospheric growth can continue indefinitely.
At the moment, Nvidia is the most sophisticated and deployed chipmaker in the world, and its production is of national importance. For the experts, dfrom a US national security point of viewneeds to be the leader in AI, since the world’s economic future depends on AI, and that country cannot allow China to have the most advanced chips.
That is the reason why the United States has invested $200 billion in the CHIPS and Science Act. Although there is competition from companies like Intel and AMD, Nvidia remains the main protagonist for now. And because of its rapid growth, many savings accounts for retirement, institutions and nowLifespans are heavily invested in the success of the company.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
