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NVIDIA's Q4 Earnings Blowout: Buy, sell or hold?
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What Does Nvidia's Soaring Stock Price Mean for Global Assets?

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Analysts Notebook joined discussion · Feb 23 05:43
Semiconductor and AI-related tech stocks jumped on Thursday after $NVIDIA(NVDA.US)$, a leader in AI, reported its fourth consecutive earnings beat and raised forecasts. Nvidia's fourth-quarter earnings exceeded analyst expectations with revenue of $22.1 billion resulting in $12.29 billion in earnings.
What Does Nvidia's Soaring Stock Price Mean for Global Assets?
Enthusiasm over the AI surge, expected to advantage not only Nvidia but also the hardware firms integral to AI infrastructures, propelled a multitude of tech stocks upward on Thursday. The $iShares Semiconductor ETF(SOXX.US)$ hit a record high, climbing over 4% to surpass $643. $Advanced Micro Devices(AMD.US)$, a major competitor of Nvidia, saw its shares increase by nearly 11%. Companies like $ASML Holding(ASML.US)$ and $Applied Materials(AMAT.US)$, which produce equipment for manufacturing advanced semiconductors, both saw gains of over 4%.
$Super Micro Computer(SMCI.US)$, a data center technology firm, experienced a surge of more than 32% in its stock value, outpacing Nvidia's post-earnings rise and tripling its share value within the current year. Chip designer $Arm Holdings(ARM.US)$, a client of Nvidia, also saw a 4% rise in its shares. Earlier in the month, Arm's stock had a nearly 50% single-day jump after it exceeded earnings expectations and raised its year forecast due to the booming AI demand.
The positive outlook for these companies, as well as other firms associated with AI technology, is bolstered by the fact that demand for data centers continues to be robust and is expanding.
While shipments to the large cloud services providers (or CSPs) continue to represent approximately 50% of Data Center segment revenue, management's commentary pointing to broad-based adoption of Gen AI across industry verticals including Healthcare, Financial Services and Automotive was encouraging," wrote Goldman Sachs analysts in a note.
Nvidia-led Rally Drives Global Markets to Record Highs
What Does Nvidia's Soaring Stock Price Mean for Global Assets?
The $S&P 500 Index(.SPX.US)$, the key indicator of Wall Street's performance, ended the day 2.1% higher, achieving its largest one-day increase since January 2023 and exceeding the previous week's peak. The tech-centric $Nasdaq Composite Index(.IXIC.US)$ climbed nearly 3%, marking its most impressive day in over a year and setting a new record.
The enthusiastic response to Nvidia's earnings had a global impact, with the Stoxx Europe 600, Japan's $Nikkei 225(.N225.JP)$, and the FTSE All-World index all reaching unprecedented highs.
Nvidia's substantial size and considerable influence within the S&P 500 mean that its notable ascent naturally elevates the entire market. Moreover, the company's success has reignited investor excitement regarding the broader prospects of artificial intelligence, with Nvidia's CEO Jensen Huang announcing on Wednesday that there is a global surge in demand as generative AI reaches a critical "tipping point."
Charlie McElligott, Nomura managing director of cross-asset strategy, said Nvidia's "halo effect has almost single-handedly held up" the US stock market in recent months.
What Does Nvidia's Soaring Stock Price Mean for Global Assets?
Source: Investopedia, Wind, Bloomberg, Financial Times
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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