By
Steve Muchoki
May 23rd, 2024
NVIDIA’s robust financial outlook further fueled optimism, with the company forecasting first-quarter revenue of $24 billion, surpassing analysts’ estimates of $22.2 billion.
As global markets grapple with rising inflationary pressures, investors are turning to unconventional hedges like Nvidia Corp (NASDAQ: NVDA). NVIDIA has emerged as a compelling contender alongside traditional safe-haven assets like gold.
NVIDIA Competing with Gold
According to a survey, about 46% of participants still see Gold as the best safeguard against inflation risks. However, almost one-third said Nvidia represents a dynamic alternative for investors seeking exposure to disruptive technologies with robust growth trajectories.
While gold has historically been a favored refuge during inflationary periods, alternative assets like technology stocks are gaining attention for their potential to outpace inflation in growth terms.
NVIDIA, the powerhouse in chipmaking technology, is garnering increased interest with its advanced AI and GPU dominance. The company’s products are integral to several rapidly growing sectors, beyond artificial intelligence. These spread to data centers, gaming, and autonomous vehicles, positioning NVIDIA at the forefront of transformative technological trends.
The NVIDIA influence has also somewhat outpaced that of Bitcoin in terms of growth trends. The asset’s meteoric rise continues to form a vital part of market analysis today.
The NVIDIA rally response draws attention to the significant influence of the firm alongside Amazon.com Inc (NASDAQ: AMZN), and Meta Platforms Inc (NASDAQ: META) in the US financial markets. These companies are expanding their control over substantial portions of the economy.
Interestingly, NVIDIA’s valuation now sits above $2 trillion, becoming a huge game changer for the US market. NVIDIA’s success also serves as an inspiration to Web 3.0 companies focused on AI.
Nvidia’s Strong Q4 Earnings: Beyond Expectations
According to data from FactSet, Nvidia reported its fourth-quarter 2023 earnings per share of $5.16, outperforming the average analyst estimate of $4.59 per share. Additionally, the company posted revenue of $22.1 billion, marking a remarkable 7.28% increase compared to Wall Street’s expectation of $20.4 billion.
Following NVIDIA’s impressive earnings announcement, Artificial Intelligence (AI) tokens experienced a surge in value. SinglularityNET (AGIX) soared by over 20% while Fetch.AI (FET) and Render (RNDR) witnessed increases of over 10% and 8% respectively.
NVIDIA’s robust financial outlook further fueled optimism, with the company forecasting first-quarter revenue of $24 billion, surpassing analysts’ estimates of $22.2 billion. Also, the chipmaker’s stock rose by over 7% in post-market trading, contributing to a broader uptick in equity markets, with S&P 500 futures gaining 0.5%.
However, the crypto market, represented by Bitcoin (BTC), experienced a slight dip of 1.2% to $62,596.31. Nvidia’s meteoric rise has garnered attention from financial institutions, with Goldman Sachs Group Inc (NYSE: GS) dubbing it “the most important stock on planet Earth”.
Meanwhile, in December 2023, Intel Corp announced its intention to unveil new products to compete with NVIDIA and peers in generative AI. During the aintel AI Everywhere launch event in New York, the company’s Chief Executive Officer (CEO) Patrick Gelsinger also announced several AI-focused chips that will hit the market in 2024 and compete with Nvidia’s H100.